- TC Energy (TRP, Financial) begins toll collection on the Southeast Gateway pipeline, with May payment received on time.
- The pipeline was completed at a cost of $3.9 billion, 13% under budget estimates.
- The project supports Mexico's plan for adding 8.5 GW of new natural gas power capacity.
TC Energy (TRP) has announced the start of toll collection from the Comisión Federal de Electricidad (CFE) for its Southeast Gateway pipeline, with the first payment for May being received on schedule. This marks a significant milestone for the company, indicating the transition from a construction phase to a revenue-generating operational phase.
The Southeast Gateway pipeline, a 715-kilometer natural gas conduit with a capacity of 1.3 billion cubic feet per day (Bcf/d), was completed ahead of schedule and realized a cost of approximately $3.9 billion, which is 13% below the original cost projections. This efficiency is a testament to TC Energy's project management prowess, saving the company an estimated $580 million in capital expenses.
This pipeline is a key component in Mexico's strategy to enhance its energy infrastructure, as the government plans to add 8.5 gigawatts of new natural gas power plant capacity. The collaboration between TC Energy and CFE in this public-private partnership set a successful precedent for future energy infrastructure projects aimed at improving energy security and fostering economic growth in Mexico.
Additionally, TC Energy is currently working with the Comisión Nacional de Energía (CNE) to secure approvals for regulated rates, which are necessary for serving potential future interruptible service customers beyond CFE. The project's completion under budget and its swift execution highlight TC Energy's capability in managing complex projects efficiently.
