TransCanada Corp is joining with the Mexican company Sierra Oil & Gas to build an US$ 800 million marine terminal and pipeline in the Mexican port of Tuxpan, the companies said in a statement. The project will transport gasoline, diesel and jet fuel to central Mexico.
The Calgary-based pipeline owner will have a 50 percent stake. Meanwhile Sierra, which is backed by Riverstone Energy Ltd and which won oil blocks in the country's first competitive oil auctions, will have 40 percent. The remainder is owned by Mexico City-based Grupo TMM SA, a Latin America-focused maritime transportation company.
The project envisions a marine terminal at the mouth of the Tuxpan River with a draft of 42 feet (14 meters), four docks and storage capacity of about 900,000 barrels. Truck loading and barge access will enable the terminal to meet demand from other ports along the Gulf Coast.