THE CANADIAN PRESS -- CALGARY - TransCanada Corp. said Monday it has wrapped up construction on its US$360-million Guadalajara natural gas pipeline in Mexico, its second pipeline investment in that country.
The entire capacity of the 307-kilometre pipeline is held under a 25-year contract with Mexico's state-run electric company, Comision Federal de Electricidad, or CFE.
The pipeline is a key piece of infrastructure that will allow CFE to provide power to Mexico's rapidly growing central region, said TransCanada chief executive officer Russ Girling.
He added completion of the Guadalajara line is a milestone in TransCanada's (TSX:TRP) ongoing capital program.
"Guadalajara is TransCanada's second pipeline investment in Mexico and highlights our ability to complete pipeline projects in the country, which positions us well for future opportunities," Girling said in a statement.
The pipeline links up to a facility near Manzanillo, Mexico, where natural gas that has been condensed into a liquid for transport is converted back into a gaseous state.
It can provide 500 million cubic feet per day of gas to a nearby CFE-owned power plant, and 320 million cubic feet per day to a national pipeline system owned by Pemex, Mexico's oil and gas company.
TransCanada operates a 57,000-kilometre network of natural gas pipelines in North America. It also ships crude oil from Canada to the United States, and has a growing power generation business.