Spectra Energy, TransCanada to build pipelines to send natural gas to Mexico – HBJ

Mexico’s state-owned power company selected a subsidiary of Houston-based Spectra Energy Corp (NYSE: SE) and a joint venture led by TransCanada Corp. (NYSE: TRP) to build two pipeline projects that will transport natural gas to Mexico.The TransCanada portion is the $2.1 billion Sur de Texas-Tuxpan pipeline project, and the Spectra portion is the $1.5 billion Nueces-to-Brownsville pipeline project. Calgary, Canada-based TransCanada will develop, operate and own 60 percent of the Sur de Texas-Tuxpan project, and its joint venture partner, IEnova, will own the other 40 percent. Mexico-based IEnova is a subsidiary of California-based Sempra Energy.The JV’s 42-inch diameter, 497-mile pipeline will begin offshore in the Gulf of Mexico near Brownsville, Texas, and will end in Tuxpan, Mexico. The project will connect with Cenagas’ pipeline system in Altamira, Mexico, and TransCanada’s Tamazunchale and Tuxpan-Tula pipelines, among others.It also will connect with the Nueces-to-Brownsville pipeline that Spectra subsidiary Valley Crossing Pipeline LLC will build. Valley Crossing will construct and operate a header system of more than 5 billion cubic feet per day in Nueces County, Texas, along with the 168-mile pipeline originating at that header. The pipeline will end at Brownsville, where it will connect with the Sur de Texas-Tuxpan pipeline.The TransCanada and Valley Crossing pipelines will carry 2.6 billion cubic feet of natural gas per day, and they’re expected to be in service in late 2018.”We are extremely pleased to further our growth plans in Mexico with one of the most important natural gas infrastructure projects for that country’s future,” Russ Girling, TransCanada’s president and CEO, said in the company’s statement. “This new project brings our footprint of existing assets and projects in development in Mexico to more than $5 billion, all underpinned by 25-year agreements with Mexico’s state power company.”

Source: Spectra Energy, TransCanada to build pipelines to send natural gas to Mexico – Houston Business Journal

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