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Pipeline extension for Mexican LNG terminal

LNG Industry,

TransCanada Corporation has placed into service the Tamazunchale Pipeline Extension, the most recent natural gas infrastructure project to be completed in Mexico.

The new US$ 600 million pipeline is an extension of the existing Tamazunchale Pipeline that links an LNG terminal and natural gas supplies from the east coast of Mexico and US to key power facilities in Tamazunchale.

"The completion of the Tamazunchale Pipeline Extension marks another milestone in our decade-long commitment to building new energy infrastructure in Mexico," said Russ Girling, TransCanada's President and CEO. "The successful completion of the extension will bring additional supplies of clean burning natural gas to power electric generation facilities in central Mexico."

TransCanada has a 25-year natural gas transportation service contract with the Comisión Federal de Electricidad (CFE). The pipeline extension is approximately 230 km long and has a contracted capacity of 630 million ft3/d. The pipeline used a combination of 30- and 36-inch-diameter pipe. Over 2000 Mexican locals were employed during construction of the Tamazunchale Pipeline Extension.

Together with the Tamazunchale Pipeline, TransCanada also owns and operates the Guadalajara Pipeline that connects natural gas supplies from the Manzanillo LNG terminal to power facilities in Manzanillo and other markets in Guadalajara and central Mexico.

Girling concluded: "Mexico's new energy reform laws are expected to provide companies like TransCanada with additional opportunities to invest in natural gas infrastructure projects that will allow Mexico to meet growing demand. TransCanada looks forward to continuing to increase its investment in Mexico as the country expands its energy infrastructure."

Adapted from press release by Katie Woodward

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