Gas Natural de la Huasteca (TransCanada) has won the tender process for the Mexican Tula - Villa de Reyes natural gas pipeline project after submitting a US$336.7 million proposal.
The team beat out competition from Enagás. IEnova also bid for the project but its proposals was disqualified. Mexico's Federal Electricity Commission (CFE), the state-owned electric utility of Mexico, is managing the bidding process.
The gas pipeline will supply natural gas to CFE’s power generation plants located in the states of Hidalgo and San Luis Potosí, as well as the central and western regions of the country.
The project comprises the engineering, procurement, acquisition of real estate rights, permits and governmental approvals, funding, construction, operation and maintenance of the pipeline. The concession agreement will have a period of 25 years.
The pipeline will have a length of 420 kilometers, a 36-inch diameter and a total capacity of approximately 886 million standard cubic feet per day (MMSCFD).
This project will be interconnected to Tuxpan - Tula gas pipeline and Villa de Reyes - Aguascalientes - Guadalajara gas pipeline, which are in tender stage.