Guadalajara Manzanillo Gas Pipeline

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In May 2009, TransCanada [Canada] was awarded a 25-year contract to build and operate the Guadalajara gas pipeline by Comision Federal de Electricidad (CFE), Mexico’s state-owned electric power company. Other bidders included Fermaca Pipeline del Pacífico and EMS Energy Services de México. The contracted included a 25-year gas purchase agreement for the entire capacity. The pipeline was to extend 310km move gas from an LNG facility in Manzanillo to Guadalajara. The proposed Guadalajara Pipeline was to have two segments. The first was approximately 6 kilometers of 24-inch diameter pipeline capable of transporting 500 million cubic feet a day (MMcf/d) of natural gas from the Manzanillo liquefied natural gas re-gasification terminal to an existing CFE power plant in Manzanillo. The second segment was a 30-inch-diameter pipeline extending approximately 295 kilometers between the Manzanillo LNG terminal and an interconnection with Pemex Gas y Petroquímica Básica (PGPB). This second segment was to be capable of transporting up to 320 MMcf/d of natural gas. The Guadalajara Pipeline was to service the power generation load in Manzanillo and Guadalajara and connect to an existing natural gas line near Guadalajara. Repsol was to supply the LNG from the Peruvian LNG project. TransCanada was to operate via its subsidiary, Energía Occidente de México, S. de R.L. de C.V. (EOM). The total project cost was estimated at US $360 million and was 70% complete as of December 31, 2010. The project was expected to be operational in the second quarter of 2011. On June 22, 2011, TransCanada announced the completion of the Guadalajara Manzanillo pipeline.