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TransCanada awarded contract for $550M, 886-MMcf/d gas pipeline in Mexico

has beenawarded a contract to build, own and operate the Tula-Villa de Reyes pipelinein Mexico, representing an investment of about $550 million.

Thecontract is supported by a 25-year natural gas transportation service contractfor 886 MMcf/d with Mexico's state-owned power company ,according to an April 11 news release.

The36-inch-diameter, 261-mile pipeline will originate in Tula in the state ofHidalgo and terminate in Villa de Reyes in the state of San Luis Potosí, according to the release. The pipeline will interconnect withTransCanada's Tamazunchale and Tuxpan-Tula pipelines, among other transporters.

TheTula-Villa de Reyes pipeline, which will bring natural gas to power generationfacilities in the central region of Mexico, is one of the six major TransCanada is expected to operate by 2018, an investmentthat amounts to about $3.6 billion.

The projectis expected to begin service by early 2018.