Saturday, May 09, 2009

TransCanada wins CFE pipeline deal

From The News

Canadian energy firm TransCanada Corporation has won a bid to build and operate a 304-kilometer (190-mile) gas pipeline in western Mexico, the Federal Electricity Commission, or CFE, said.

CFE said in a statement that the proposed Guadalajara Pipeline will transport gas from a liquefied natural gas, or LNG, terminal under construction near Manzanillo, Colima, to Guadalajara, the nation's second-largest city.

The pipeline will be 30 inches in diameter and will have the capacity to transport 500 million cubic feet per day. The CFE said the 25-year contract will be signed on May 27 and that the construction phase will last 22 months.

According to the CFE, the project is part of electrical infrastructure works that it is developing in the western part of the country that include building a LNG terminal in Manzanillo and converting the thermoelectric plant in that Pacific coast city to use natural gas instead of fuel oil.

The LNG project will supply gas to thermoelectric plants in the states of Colima, Guanajuato, QuerActaro and Jalisco.

The government began construction of the LNG terminal in Manzanillo last year with the eventual goal of processing 500 million cubic feet of natural gas per day beginning in 2011.

The $700 million plant will create 1,500 jobs and allow the CFE to save $230 million annually.

The News article


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