Canadian gas pipeline operator TC Energy and the Mexican State Federal Electricity Commission (CFE) They agreed Thursday to develop a $4.5 billion gas pipeline and suspend international arbitration proceedings by formalizing a strategic alliance.
the similarities the details of the collaboration They take place at a time when Canada and the United States are engaged in their most serious commercial confrontation with Mexico under the new North American trade agreement, TMEC.
TC Energy said in a statement it would partner with the CFE, Mexico’s national electric utility, to develop and build the Southeast Gateway Pipeline, a 715-kilometer pipeline that will transport 1.3 billion cubic feet of gas per day and supply the fuel to the central and southeastern regions of Mexico.
As part of the deal, the two companies agreed to consolidate existing assets, including the Tamazunchale gas pipeline, as well as the controversial Tula-Villa de Reyes and Tuxpan-Tula pipelines.
Their public-private partnership includes a single transportation services agreement, denominated in dollars, and runs through 2055.
Last month, TC Energy said would build a $5 billion gas pipeline with CFE in the Mexican state of Veracruz.