Wednesday, June 19, 2024

Long-awaited pipeline begins shipping natural gas from Texas

A pipeline whose inauguration had been held up by a dispute between contractors and the Federal Electricity Commission (CFE) has begun sending natural gas to Mexico from Texas, the Mexican company IEnova announced on Tuesday.

The South Texas-Tuxpan pipeline has a capacity to transport 2.6 billion cubic feet of natural gas a day, representing an increase of 40% in Mexico’s natural gas supply. The gas will be used for electricity generation.

The pipeline, built by IEnova and the Canadian company TC Energy, had been ready to start moving gas in July but the start of operations was delayed by a CFE initiative to renegotiate the contracts, which were signed before President López Obrador took office.

On August 27, López Obrador announced that the government had reached an agreement with the companies that would reduce the burden on the public purse by US $4.5 billion and extend IEnova’s concession for 10 years.

In a statement sent to the Mexican Stock Exchange, IEnova celebrated the agreement and noted that the pipeline was built with a US $2.6-billion investment.

“These agreements satisfy the interests of both parties, and allow a benefit for the CFE, maintaining the integrity of the contracts,” they said. “IEnova reiterates our commitment to keep investing in Mexico to strengthen the country’s energy infrastructure, and contribute to national development.”

Source: El Financiero (sp), La Política Online (sp)

Have something to say? Paid Subscribers get all access to make & read comments.
Tropical Storm One projection Cyclone Albert

Potential tropical cyclone approaches northeastern coast of Mexico

0
The potential tropical cyclone could become the first named storm of the hurricane season by Wednesday.
Worried guests gather around a hot tub in Puerto Peñasco

Wife of US tourist who died in Puerto Peñasco hot tub electrocution files US $1M suit

8
When she saw her husband struggling under the water, Zambrano jumped in to help, only to be electrocuted herself.
A group of mostly Black migrants, some of whom maybe be undocumented foreigners, walks down a Mexican highway under a bright sun.

Nearly 1.4 million undocumented migrants detected in Mexico so far this year

1
The National Immigration Institute (INM) data on encounters from January to May is almost double the number for all of 2023.