The company will be responsible for the design, construction and operation of the pipeline, which will transport natural gas roughly 16 km to fuel the existing Francisco Pérez Rios power plant, near Tula.
The pipeline is expected to be in service next year, said ATCO, which will use a local engineering and construction firm to support the project.
"We are honoured to have been selected by the Comisión Federal de Electricidad (CFE) to build and operate this important piece of energy infrastructure in this great country," said president and chief executive officer of ATCO, Nancy Southern.
"ATCO has made a long-term commitment to Mexico and we consider it a great privilege to be a part of the community.
"We look forward to forming lasting partnerships and demonstrating that we are a trusted builder and operator of key infrastructure, just as we have done in Canada and Australia."
ATCO has assets of about $17 billion and works in power generation, utilities and workforce accomodation and site services. It employs more than 9,000 people.
Shares of the Calgary, Alberta-based company inched up 0.5 percent to C$45.50 Friday afternoon.