TransCanada Awarded Contract to Build US$1 Billion Natural Gas
Pipeline in Mexico
CALGARY, ALBERTA -- (Marketwire) -- 11/01/12 -- TransCanada
Corporation (TSX:TRP) (NYSE:TRP) (TransCanada) today announced that
its Mexican subsidiary, Transportadora de Gas Natural del Noroeste,
has been awarded the contract to build, own and operate the El
Encino-to-Topolobampo Pipeline (Topolobampo Pipeline) in Mexico by
the Comision Federal de Electricidad (CFE), Mexico's federal power
TransCanada expects to invest approximately US$1 billion in the
Topolobampo Pipeline project, which is supported by a 25-year natural
gas transportation service contract with the CFE. The 30-inch
diameter pipeline will be approximately 530 kilometres (329 miles)
long and have contracted capacity of 670 million cubic feet per day.
It is anticipated the project will be in-service in the third quarter
"Mexico's government is engaged in a comprehensive plan to expand the
nation's electrical grid and generating capacity, and much of that
generation will be natural gas-fired," said Russ Girling,
TransCanada's president and chief executive officer. "This award is
another example of TransCanada's commitment to help develop Mexico's
energy infrastructure in a sustainable and cost-efficient manner."
The Topolobampo Pipeline begins in El Encino, in the state of
Chihuahua, and terminates in Topolobampo, in the state of Sinaloa,
interconnecting with other pipelines that are expected to be built as
a result of separate bid processes by the CFE.
"This project is a response to a CFE invitation to bid. As Mexico
makes the transition from fuel oil to cleaner-burning natural gas,
there will be additional opportunities for TransCanada," Girling
said. "These opportunities are consistent with our strategy to build
long life infrastructure, underpinned with long-term contracts."
Girling said TransCanada has welcomed the opportunity to bid on a
number of CFE pipeline proposals through a transparent, fair and
comprehensive process. TransCanada has already built and is operating
the Guadalajara and Tamazunchale pipelines and will soon break ground
on a Tamazunchale Pipeline Extension.
With more than 60 years' experience, TransCanada is a leader in the
responsible development and reliable operation of North American
energy infrastructure including natural gas and oil pipelines, power
generation and gas storage facilities. TransCanada operates a network
of natural gas pipelines that extends more than 68,500 kilometres
(42,500 miles), tapping into virtually all major gas supply basins in
North America. TransCanada is one of the continent's largest
providers of gas storage and related services with approximately 380
billion cubic feet of storage capacity. A growing independent power
producer, TransCanada owns or has interests in over 10,900 megawatts
of power generation in Canada and the United States. TransCanada is
developing one of North America's largest oil delivery systems.
TransCanada's common shares trade on the Toronto and New York stock
exchanges under the symbol TRP. For more information visit:
http://www.transcanada.com/ or check us out on Twitter @TransCanada.
FORWARD LOOKING INFORMATION
This publication contains certain information that is forward-looking
and is subject to important risks and uncertainties (such statements
are usually accompanied by words such as "anticipate", "expect",
"would" or other similar words). Forward-looking statements in this
document are intended to provide TransCanada security holders and
potential investors with information regarding TransCanada and its
subsidiaries, including management's assessment of TransCanada's and
its subsidiaries' future financial and operation plans and outlook.
All forward-looking statements reflect TransCanada's beliefs and
assumptions based on information available at the time the statements
were made. Readers are cautioned not to place undue reliance on this
forward-looking information. TransCanada undertakes no obligation to
update or revise any forward-looking information except as required
by law. For additional information on the assumptions made, and the
risks and uncertainties which could cause actual results to differ
from the anticipated results, refer to TransCanada's Management's
Discussion and Analysis filed February 15, 2012 under TransCanada's
profile on SEDAR at http://www.sedar.com/ and other reports filed by
TransCanada with Canadian securities regulators and with the U.S.
Securities and Exchange Commission.
Shawn Howard/Grady Semmens
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