MEXICO CITY, MEXICO--(Marketwired - Aug. 2, 2016) - Media Advisory - TransCanada Corporation (TSX:TRP) (NYSE:TRP) (TransCanada), Sierra Oil & Gas and Grupo TMM (BMV:TMM A) (OTC PINK:GTMAY) today announced they are proposing to jointly develop storage and transportation infrastructure to serve the growing demand for refined products such as gasoline, diesel and jet fuel in the central region of Mexico and surrounding markets.
The proposed US$800 million project would be the largest single investment in refined products since the establishment of the Mexico energy reform. It involves transporting refined products into central Mexico from the Gulf Coast, providing energy security, jobs and economic growth in the country. TransCanada will hold a 50 per cent interest in the project, with Sierra Oil & Gas holding 40 per cent and Grupo TMM holding 10 per cent.
The project includes:
- a marine terminal near Tuxpan, Veracruz for offloading and distribution of refined products
- an approximately 265 kilometre (165-mile) refined products pipeline
- an inland storage and distribution hub in central Mexico
The marine terminal, with a draft of 42 feet (14 metres), will include four docking positions. The terminal will be pipeline-connected to key distribution centres in the region and will offer racks for truck loading and barge access to service the demand of other ports in the Gulf Coast. The number and size of the vessels that will be serviced simultaneously gives our project significant advantages over other projects in the region in terms of flexibility, speed and efficiency.
The approximately 100,000 barrels per day refined products pipeline will parallel TransCanada's recently awarded Tuxpan-Tula natural gas pipeline project and expand the company's growing pipeline footprint in Mexico. The inland distribution hub in central Mexico will provide excellent connectivity to the majority of the Mexico Valley market with access to major highways and distribution centres in the country.
The Tuxpan-central Mexico corridor is the ideal route to efficiently supply refined products in the region making this project a significant contribution to the existing refined products distribution chain in Mexico. 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.
With more than 65 years' experience, TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas and liquids pipelines, power generation and gas storage facilities. TransCanada operates a network of natural gas pipelines that extends more than 90,300 kilometres (56,100 miles), tapping into virtually all major gas supply basins in North America. TransCanada is the continent's leading provider of gas storage and related services with 664 billion cubic feet of storage capacity. A large independent power producer, TransCanada currently owns or has interests in over 10,500 megawatts of power generation in Canada and the United States. TransCanada is also the developer and operator of one of North America's leading liquids pipeline systems that extends over 4,300 kilometres (2,700 miles), connecting growing continental oil supplies to key markets and refineries. TransCanada's common shares trade on the Toronto and New York stock exchanges under the symbol TRP. Visit TransCanada.com and our blog to learn more, or connect with us on social media and 3BL Media.
About Sierra Oil & Gas
Sierra Oil & Gas is the first independent Mexican oil and gas company. With local and international oil and gas expertise, Sierra is concentrated on select, high-quality investment opportunities in upstream and midstream oil and gas niches in Mexico. The company has a 45 percent stake in the consortium that won the historic first two exploration and production oil and gas blocks to be awarded to private industry in modern Mexico.
About Grupo TMM
Grupo TMM is a Latin American maritime transportation company with more than 60 years of experience. Through its branch offices and network of subsidiary companies, Grupo TMM provides a dynamic combination of maritime services port management and logistics, with extensive experience handling and storing liquids.