(Bloomberg) --TransCanada Corp. won rights to develop and operate a natural gas pipeline in central Mexico, beating a subsidiary of Sempra Energy that was disqualified from bidding.
TransCanada unit Transportadora de Gas Natural de la Huasteca won the auction with a bid of $336 million, the lowest of three companies that participated, state-owned utility Comision Federal de Electricidad or CFE said Friday. The Calgary-based pipeline owner, which recently announced plans to sell as much as 49 percent of its Mexican assets, now has six projects in the country.
CFE disqualified a bid from Infraestructura Energetica Nova SA, a Sempra unit known as Ienova. It was the third time since March 16 that an Ienova bid was thrown out for failing to meet requirements to operate the pipeline.
Ienova, Mexico’s only publicly traded energy company, has fallen 4 percent this year. The faulty bids may raise doubt over its ability to win new projects and meet growth targets, according to a March 30 research note led by Barclays Plc analyst Pablo Monsivais.
The 261-mile (420-kilometer) pipeline will supply gas to CFE’s power plants in the central states of Hidalgo and San Luis Potosi. The project is expected to begin operation in January 2018, according to CFE.
--With assistance from Andrea Navarro. To contact the reporter on this story: Adam Williams in Mexico City at firstname.lastname@example.org To contact the editors responsible for this story: David Marino at email@example.com Jim Efstathiou Jr., Carlos Caminada
Copyright 2017 Bloomberg News.
WHAT DO YOU THINK?
Click on the button below to add a comment.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Most Popular Articles
From the Career Center
Jobs that may interest you