Spectra Energy awarded Mexico natural gas pipeline project

 

Valley Crossing Pipeline LLC, a subsidiary of Spectra Energy Corp., has been awarded a 168-mi intrastate natural gas pipeline project by the Comisión Federal de Electricidad (CFE)—Mexico’s state-owned utility serving 37 MM customers—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 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.

“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,” said Bill Yardley, president of U.S. Transmission and Storage for Spectra Energy.

“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 B in capital expansion projects by the end of this decade, with approximately $20 B either in execution or in service since 2013.”

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