Mexico's government let a 26-year contract to a group of companies led by TransCanada PipeLines Ltd., Calgary, to build, own, and operate a 434-mile, 370 MMcfd capacity pipeline in the Yucatan peninsula.
The M?rida pipeline project has an estimated capital cost of $250-$300 million.
It represents one of the largest energy-related projects, as well as the first pipeline contract, awarded since Mexico opened its downstream natural gas sector to private investment.
Operator TransCanada holds 62.5% interest in the project. Partners are International Generating Co. (InterGen), Boston, a joint venture of units of Bechtel Enterprises and Pacific Gas & Electric Co., both of San Francisco; and Corp. Gutsa, Mexico City. InterGen holds a 32.5% interest and Gutsa holds 5%.
The 16-24-in. diameter pipeline will originate at Cuidad Pemex in the state of Tabasco, traverse the state of Campeche and end in Yucatan state at Valladolid.
It will provide natural gas to six power plants owned and operated by Comisi?n Federal Electricidad, Mexico's national electric utility, and possibly to another now on the drawing boards, TransCanada said. It also will provide gas to industrial customers in the cities of Campeche, M?rida, and Valladolid.
Construction is slated to begin in 1998 for a projected in-service date of September 1999.
TransCanada said it will open an office in Mexico City to lead the M?rida pipeline project.
InterGen, founded in 1995, manages international power projects worldwide. It has projects now under construction in the U.K., Mexico, Philippines, Colombia, and India. Gutsa, established in 1944, is one of Mexico's largest construction groups, with projects in the highway, industrial, real estate, and energy sectors.
Copyright 1997 Oil & Gas Journal. All Rights Reserved.
![Yucatan Pipeline Project [25186 bytes]](http://images.pennwellnet.com/ogj/images/ogj2/9513jnyu.gif){kind=link}