Spectra Energy Corp has announced that its subsidiary, Valley Crossing Pipeline, LLC, has been awarded a 168-mile intrastate natural gas pipeline project by the Comisión Federal de Electricidad (CFE) to provide natural gas transportation services beginning in 2018 to meet Mexico's growing electric generation needs.
Valley Crossing will construct and operate a header system of more than 5 billion cubic feet per day (Bcf/d) near the Agua Dulce Hub in Nueces County, Texas, as well as a 2.6 Bcf/d pipeline originating at that header and extending to Brownsville, Texas. There, the pipeline will connect with the Sur de Texas – Tuxpan pipeline, which will extend into Mexico. The pipeline will have a length of 250 km and a 42-inch diameter.
The total project investment is estimated at US$1.5 billion.
Bill Yardley, president of U.S. Transmission and Storage for Spectra Energy, said:
"Spectra Energy is pleased to have secured the bid to build and operate this critical infrastructure, which will provide clean-burning and reliable natural gas to support Mexico as its electric generators shift away from fuel oil and imported LNG. Successfully securing this project adds to our already-strong asset portfolio, connects us to another key demand-pull market, and brings us closer to our goal of securing $35 billion in capital expansion projects by the end of this decade, with approximately $20 billion either in execution or in service since 2013."