TransCanada to develop $800M US energy storage and transportation project in Mexico

TransCanada Corp. says it's investing more in Mexico with plans to develop an $800million US refined fuel storage and transportation project.

The Calgary-based company is partnering with Sierra Oil and Gas and Grupo TMM on the project that will have TransCanada holding a 50 per cent interest.

The deal includes a marine terminal near Tuxpan, Veracruz, 265 kilometres of pipeline, and an inland storage and distribution hub in central Mexico.

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TransCanada says the roughly 100,000-barrels-per-day pipeline carrying refined fuel from the coast to central Mexico will run parallel to the $500-million USTuxpan-Tula natural gas pipeline project that it won a contract to build, run and own last November.

The latest project follows the company winning a contract in June with partner Sempra Energy to build the $2.1-billion US Sur de Texas-Tuxpan natural gas pipeline, and in April winning a contract for the $550-million USTula-Villa de Reyes pipeline.

Overall TransCanada says it has existing assets and projects in development in the country totalling more than $5 billion US, with almost all covered by 25-year agreements with Mexico's state-owned utility.