Canadian energy infrastructure giant TC Energy Corp. has completed construction of a major natural gas pipeline in Mexico and expects to begin service by the end of May, pending final regulatory approval.

The Southeast Gateway Project, a 444-mile (715 kilometres) offshore pipeline with a capacity of 1.3 billion cubic feet per day, is "complete and ready for service," CEO François Poirier announced during the company's first-quarter earnings call Thursday. 

The pipeline is contracted until 2055 and is expected to significantly boost the company's long-term cash flow.

With the pipeline completed, the Calgary-based company is now awaiting approval for its regulated rate from Mexico's National Energy Commission (CNE) before it can launch operations later this month.

"Our expectation is to receive CNE approval by the end of May," Poirier said, aligning with the targeted service start date three years after the project's final investment decision.

TC Energy invested approximately $3.9 billion in the project, notably 13% less than the initial $4.5 billion estimate. 

The pipeline will transport natural gas to power plants being built by Mexico's state utility CFE in central and southeastern regions, supporting the operations of 10 planned facilities.

While the Southeast Gateway project progresses, TC Energy has encountered delays on the $400 million southern section of the Villa de Reyes pipeline in central Mexico due to land acquisition issues. 

The company now expects gas flow to begin in the first half of 2026, a delay from the initial 2023 target.

Despite Mexico's rapidly growing natural gas demand, driven largely by CFE's investments, TC Energy currently has no immediate plans for additional pipeline construction in the country, though discussions with CFE regarding future capacity needs are ongoing.