TC Energy to develop natural gas pipeline in southeast Mexico

TC Energy

TC Energy, the Canadian midstream company, will develop a natural gas pipeline in southeast Mexico; after the company agreed with state-owned electric utility Comision Federal de Electricidad (CFE).

Firstly, the pact involves a natural gas line that will start in Tuxpan, in the Mexican state of Veracruz; that will run by sea and connect to the Mayakan pipeline, in the states of Tabasco and Campeche.

Secondly, the agreement would also involve the finishing of the pipeline Tuxpan-Tula; after work stalled over concerns that the project would cut across lands that local communities consider sacred.

Thirdly, in fact, the agreement intends to resolve, or at least to address several problems inherited by past administrations; according to the CFE statement. Such problems have caused the spending of several millions, and problems with indigenous peoples in the Sierra of Puebla.

Consequently, TC Energy has made the commitment to take a more active role in such matter; so that the Tuxpan-Tula pipeline can be terminated; as it is critical for Mexico to deliver natural gas from the Gulf of Mexico region, to the central.

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TC Energy and CFE agreement settles discussions between the parts

Moreover, the statement reads that these issues are long-running in the Mexican history; however, bringing natural gas to the Yucatan peninsula and the southeast region would be a good start to address them.

In addition, the agreement will seek to unify all the transport contracts between the CFE and TC Energy; therefore, the Mexican administration will save substantial capital as for its paying obligations to TC Energy.

On the other hand, this agreement comes at a rare moment; after months of dispute between energy companies and Mexico; which also said such firms had benefited from contracts that put an unfair burden on taxpayers.

In fact, back in 2019, Mexican president Andres Manuel Lopez Obrador, said it had persuaded TC Energy and other pipeline developers to waive significant profits from deals signed under the previous administration after renegotiating the contracts.

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