Shawcor awarded $500M contract in Southeast Mexico

TORONTO — On Aug. 19, Shawcor Ltd. announced that its pipe coating division has received a formal contract valued at approximately C$500 million from Transportadora de Gas Natural de la Huasteca, S. de R.L. de C.V., the Mexican subsidiary of TC Energy Corporation, to supply pipe coating services on the Southeast Gateway Pipeline project, an offshore natural gas pipeline in southeast Mexico.

In support of this project, which reached a final investment decision this month, Shawcor will mobilize facilities and apply concrete weight coating to approximately 706 km of 36-inch diameter pipe that will connect the TGNH facilities in Tuxpan, Veracruz offshore to Coatzacoalcos, Veracruz and onward to Dos Bocas, Tabasco. Facility mobilization will start in Q3 2022 with coating expected to begin early in 2023 and take approximately one year to complete. The work will be conducted from a high-capacity concrete coating facility which Shawcor will re-establish in Altamira, Mexico.

John Highams, PPG’s Vice President of Strategic Projects commented “Shawcor’s ability to utilize its experience from the mobilization and execution of the Sur de Texas – Tuxpan transmission line, completed in 2018, provides TC Energy with the assurance to deliver this world-class project safely and reliably.” Kevin Reizer, PPG President added “This project reinforces the trend of increased large project activations we are seeing globally and coupled with the recently announced Scarborough Gas Export Pipeline, will return Shawcor’s conventional offshore pipe coating activity to levels not seen since the oil price collapse of 2015.”

Shawcor leadership will share further details regarding the expected economic impact of this contract award in due course.