TransCanada to build $320 million pipeline in Mexico

CALGARY, Alberta (Reuters) - TransCanada Corp (TRP.TO: Quote) said on Thursday it won a bid to build and own a $320 million natural gas pipeline on Mexico's Pacific coast, expanding its operations in the country.

The proposed pipeline will run 310 km (193 miles) to Guadalajara from a liquefied natural gas terminal being built near Manzanillo, the biggest Canadian pipeline operator said.

It would carry up to 500 million cubic feet a day of power generation load, and be in service by March 2011, TransCanada said.

It is supported by a 25-year contract with Comision Federal de Electricidad, the state-owned power company.

TransCanada currently runs the 130 km (81 mile) Tamazunchale pipeline in central Mexico. It build two other lines in the country in the 1990s, but has since sold them.

TransCanada shares were off 11 Canadian cents at C$30.88 on the Toronto Stock Exchange.

($1=$1.17 Canadian)

(Reporting by Jeffrey Jones; Editing by Frank McGurty)