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Project Insights

Mexico avoids pipeline legal battle

An out-of-court settlement between Mexico and private pipeline developers permits the entry into operation of the 74 MMcm/d South Texas-Tuxpan pipeline within days An out-of-court settlement between Mexico and private pipeline developers permits the entry into operation of the 74 MMcm/d South Texas-Tuxpan pipeline within days.
By Elena Mataro 5 September 2019 Americas / Supply & Demand 0 34551
Gas pipeline construction in Stittsville. (TC Energy)

The key issue: Mexico’s state utility CFE has put an end to its dispute with three pipeline developers over tariffs and contract extensions, which was delaying the startup of completed infrastructure.

Interfax analysis: The agreement between the Mexican Federal Electricity Commission (CFE) and three private pipeline development companies means a lengthy court battle has been avoided and the pipelines can enter operations sooner. The companies involved will benefit from extensions to their construction and development contracts, while the government can claim to have eased concerns...