Spectra Energy Corp.'s Valley Crossing Pipeline LLC has been awarded the contract for a 168-mile Texas intrastate natural gas pipeline project by Mexico's Comision Federal de Electricidad (CFE). It will deliver gas to a planned undersea pipeline that will run from Texas to Mexico.

Valley Crossing will construct and operate a 5 Bcf/d header system near the Agua Dulce Hub in Nueces County, TX, as well as a 2.6 Bcf/d pipeline originating at that header and extending to Brownsville, TX. There, the pipeline will connect with the Sur de Texas-Tuxpan pipeline, which will extend into Mexico.

Valley Crossing will be a portion of the system that enables the transport of Texas natural gas to power generation plants in Mexico. CFE also just awarded the contract for the Sur de Texas-Tuxpan pipeline -- to a joint venture of TransCanada Corp. and Sempra Energy (see Daily GPIJune 13).

Valley Crossing "...will provide clean-burning and reliable natural gas to support Mexico as its electric generators shift away from fuel oil and imported LNG [liquefied natural gas]," said Bill Yardley, Spectra president of U.S. transmission and storage.

According to a CFE data sheet on the pipeline, Valley Crossing (also known as Nueces-Brownsville) is expected to be in service in October 2018.