Monday, November 5, 2012

Is TransCanada Going the Way of Gazprom?

Canadian pipeline company TransCanada announced its Mexican subsidiary was given a contract by the federal power company there to build a 329-mile natural gas pipeline for the state. The company said the project was part of an effort to help move the country away from fuel oil to cleaner-burning natural gas. Further north, the Nebraska government said it issued a draft report on the Keystone XL pipeline, saying a revised route effectively avoided a sensitive ecosystem in the state.  At home, TransCanada said it was teaming up with Chinese partners to press for a crude oil pipeline for western coasts. While the company's economic influence doesn't have the dominance of Russia's Gazprom, its pipeline ambitions suggest it aims to take a leadership position in North American transit networks.
Russian energy company Gazprom this week announced it reached investment decisions with the Serbian and Hungarian government for its South Stream natural gas network. The planned European gas network is part of Russia's efforts to diversify export routes given protracted economic conflicts with Kiev. For the country's east, the company said it was moving ahead with plans for a 2,000-mile pipeline network that would tap into natural gas deposits in the arctic Chayandinskoye field. That pipeline, the company said, means it's "going to build a unified gas supply system across the whole country, from the west to the east."
Canadian pipeline company TransCanada has enjoyed similar successes in recent weeks. The company announced that its Mexican subsidiary secured a contract from Mexico's federal power company CFE to build, own and operate a 329-mile natural gas pipeline for the country.  Russ Girling, the pipeline company's top executive, said the contract is a reflection of Mexico's move away from fuel oil to natural gas.  This, he said, meant "there will be additional opportunities" for his company in Mexico.

Read more:  http://oilprice.com/Energy/Energy-General/Is-TransCanada-Going-the-Way-of-Gazprom.html

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