A joint venture that includes San Diego-based Sempra Energy received a contract to build, own and operate a 497-mile, $2.1 billion natural gas pipeline connecting South Texas and Tuxpan, Veracruz, Mexico. The pipeline will serve power plants in Tuxpan.
Sempra (NYSE: SRE) announced the project on June 13.
Mexico’s Comision Federal de Electricidad awarded the contract to the joint venture, called Infraestructura Marina del Golfo. TransCanada Corp. joined Sempra’s Mexico unit, IEnova, to form the joint venture. IEnova holds 40 percent of the joint venture. The name of Sempra’s Mexico unit is actually short for Infraestructura Energética Nova SAB de CV.
The 42-inch pipeline will have a capacity of 2.6 billion cubic feet per day, and is expected to enter service in late 2018.
The joint venture will be responsible for implementing the project, including permitting, acquiring land and rights of way, engineering, procurement, construction, financing, operation and maintenance.
Separately, on June 14, Sempra declared a quarterly dividend of 75½ cents per share of common stock. The dividend is payable July 15 to shareholders of record on June 30.