TransCanada Corporation announced on Tuesday its plan to construct an $800 million marine terminal and oil pipeline to serve the growing demand for refined products like gasoline, diesel, and jet fuel in central Mexico.
The project is a joint venture with TransCanada, who will hold a 50 percent share; Sierra Oil & Gas, who will hold a 40 percent share; and Grupo TMM, who will hold a 10 percent share.
The project would be the “largest single investment in refined products since the establishment of Mexico energy reform,” according to TransCanada’s statement. The job includes a marine terminal for offloading and distribution of refined products, a 165-mile refined products pipeline, and an inland storage and distribution hub.
TransCanada also announced back in June its plan to build and operate a $2.1 billion natural gas pipeline in Mexico through a joint venture with a unit of Sempra Energy. The new project will add to the company’s approximately $5 billion footprint in Mexico while its projects in Canada are seeing delays due to strong opposition from environmental and aboriginal groups.
TransCanada has not yet announced a timeline for the announced Mexico project and says the planned in-service date will be based on discussions with contract shippers.
“The project brings together leaders in their own fields, and with its attributes, positions our project as the premier choice for fuel importers,” TransCanada wrote in a statement.