TransCanada Corp. will build, own and operate the Tamazunchale Pipeline extension in Mexico. Construction of the pipeline is supported by the award of a 25-year natural gas transportation service contract by the ComisiĆ³n Federal de Electricidad (CFE), Mexico.

TransCanada expects to invest approximately $500 million in the pipeline and anticipates an in-service date in first quarter 2014. The project will be 235-km (146-m) long and have contracted capacity of 630 million cu ft per day. The pipeline will use a combination of 30-inch and 36-inch diameter pipe and have 37 megawatts of installed compression.

The pipeline will originate at the terminus of TransCanada's existing Tamazunchale Pipeline in the state of San Luis Potosi and extend through the states of Hidalgo and Queretaro, where it will connect with Mexico's National Pipeline System and serve a CFE combined-cycle power generating facility near El Sauz, Queretaro.