TransCanada says it has been chosen to build, own, and operate the $2.1-billion Sur de Texas-Tuxpan natural gas pipeline in Mexico.

The bid for the Sur de Texas-Tuxpan project was presented in partnership with IEnova, a subsidiary of Sempra Energy. The project will be supported by a 25-year natural gas transportation service contract for 2.6 bcf/d with the Comisión Federal de Electricidad, Mexico’ state-owned power company.

TransCanada expects to invest approximately $1.3 billion in the partnership to construct an approximately 800-km (497-mi), 42-in. pipeline that will run mostly offshore.

Plans call for the pipeline to begin in the Gulf of Mexico, at the border point near Brownsville, Texas, then offshore along the Mexican coast. The system will have three laterals that extend onshore to power generation markets in Matamoros in Tamaulipas state, and Altamira and Tuxpan in the state of Veracruz.

The joint venture, Infraestructura Marina del Golfo, is targeting a late 2018 in-service date.