Tamazunchale Pipeline

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On June 17, 2005 TransCanada Corporation was awarded a 26 year build own operate (boo) contract for a 125km natural gas pipeline in east-central Mexico by Mexico’s Comision Federal de Electricidad (CFE). The pipeline was designed to connect an electricity generation station near Tamazunchale to a Pemex Gas facility near Naranjos, Veracruz. The pipeline was to have an initial capacity of 170 million cubic feet per day (mmcf/d). Plans existed to expand capacity to 430 mmcf/d in 2009 to meet the needs of additional proposed power plants. Transcanada placed the winning bid for construction at US $181.1 million over a consortium of Petrobras (Brazil) and Technit (Italy-Argentina) for US $208.2 million. Construction began in 2005, and by the end of the March 2006 (1Q), TransCanda had invested a significant amount of its own resources on the project. The pipeline was commissioned in September 2006 and began commercial operations on December 1, 2006. The operation of the pipeline was executed by TransCanada’s wholly owned subsidiary Transportadora de Gas Natural de La Huasteca (TGNH).