TransCanada to expand Mexican network with US$550 million natural gas pipeline

CALGARY – TransCanada Corp. (TSX:TRP) says it will spend about US$550 million to build a 420-kilometre natural gas pipeline in Mexico.

The Calgary-based company says the line would supply Mexico’s state-owned power company with nearly 900 million cubic feet of natural gas per day.

TransCanada expects the new line will be in service in early 2018.

It would become one of six major natural gas pipeline systems that TransCanada operates in Mexico.

The new line would begin in Tula, in the Mexican state of Hidalgo north of Mexico City, and travel northwest to Villa de Reyes, in the state of San Luis Potosi.

The Tula-Villa de Reyes line would also connect with two other TransCanada pipelines and other gas transporters in the region.