Daily Oil Bulletin Quotes Steven Otillar on Bidding for Mexican Pipeline Project

Daily Oil Bulletin has quoted Steven Otillar, a partner in the oil and gas practice at Akin Gump, in its article “Enbridge And TransCanada May Be In Hunt To Build Mexican Mega Pipeline.” Two Canadian pipeline companies, according to the article, are registered bidders to win the contracts to build, own and operate two major, interconnected pipeline projects in Texas and northeast Mexico.

Otillar said the companies, TransCanada Corporation and Enbridge Inc., could be well positioned to win both contracts if they decide to submit applications. Canadian companies, he said, have been accurate in assessing capital costs, which could be a big factor. One of the projects, Otillar noted, is the offshore Sur de Texas Tuxpan pipeline, which will have a large 840-kilometer underwater line.

As for who might win the bidding, Otillar thinks TransCanada has an edge as it knows how to operate in Mexico and already has won four projects there. He said TransCanada, after failing to get U.S. approval for the Keystone XL, has found a strong market in Mexico in which to expand, where regulations are likely to be less burdensome than in the United States.