Mexico's state power utility has struck a deal with Canada's TC Energy Corp. to develop a natural gas pipeline in the country's south and consolidate the firm's contracts in the central region, the utility said on Aug. 1.
The pact appeared to mark a rare moment of agreement after months of dispute between energy companies and Mexico, which said such firms had benefited from contracts that put an unfair burden on taxpayers.
The new pipeline in the south will start in Tuxpan in the Mexican state of Veracruz and run by sea to link with the Mayakan pipeline in the states of Campeche and Tabasco.
"The agreement aims to solve a long-running problem of the lack of natural gas supply in the Mexican southeast and the Yucatan peninsula," the Comision Federal de Electricidad (CFE) said in a statement.
The pact also says Mexico will step up efforts to help TC Energy complete the Tuxpan-Tula pipeline after work stalled over concerns the project would cut across lands local communities consider sacred.
Last year, President Andres Manuel Lopez Obrador had suggested re-routing the 178-mile (286-km) pipeline, but the utility did not say how it would resolve the matter.
"The CFE has agreed with TC Energy that it will take a more active role that will allow for solving social conflicts and completing the Tuxpan-Tula pipeline," it said.
Bundling together together TC Energy's contracts in central Mexico would generate savings for the utility, it added.
In 2019, Lopez Obrador's government 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.
Recommended Reading
AVEVA: Immersive Tech, Augmented Reality and What’s New in the Cloud
2024-04-15 - Rob McGreevy, AVEVA’s chief product officer, talks about technology advancements that give employees on the job training without any of the risks.
Haynesville’s Harsh Drilling Conditions Forge Tougher Tech
2024-04-10 - The Haynesville Shale’s high temperatures and tough rock have caused drillers to evolve, advancing technology that benefits the rest of the industry, experts said.
Betting on the Future: Chevron Technology Ventures’ Investment Strategy
2024-04-09 - After a quarter century, Chevron Technology Ventures seeks both incremental and breakthrough technologies with its early-stage investment program.
Tech Trends: Autonomous Drone Aims to Disrupt Subsea Inspection
2024-01-30 - The partners in the project are working to usher in a new era of inspection efficiencies.
Drilling Tech Rides a Wave
2024-01-30 - Can new designs, automation and aerospace inspiration boost drilling results?