CFE and TC Energy have formalized the construction of a $4,500 million gas pipeline

August 5, 2022 | 8:52 AM

The Federal Electricity Authority (CFE) and TC Energy Corp. have drafted an agreement to begin development of a natural gas pipeline with an investment of $4,500 million.

According to the Canadian company, the construction of Southeast pipelineWhich will be 715 kilometers long and transport 1,300 million cubic feet of gas per day, will supply the central and southeastern regions of Mexico with natural gas.

The agreement between the two companies also strengthened Infrastructure It already exists as the Tamazunchale, Tula-Villa de Reyes and Tuxpan-Tula gas pipelines.

Read more: CFE: Structural Failure and Impact of High Fuel Costs 2Q22; Destroy 87.7% of its usefulness

CFE and TC Energy Association in a difficult time

The agreement between the Canadian private company and the Mexican public services company comes at a time when both the United States and Canada expressed their dissatisfaction with the decisions taken by the Mexican government in energy matters, considering that they contradict what was agreed upon in Treaty between Mexico, the United States and Canada (T-MEC).

in spite of that, TC . energy He explained that the association would be beneficial by allowing it to expand its secured capital program to $33,000 million and could even increase its EBITDA growth perspective from 2021-2026.

in july, Robert VelascoHead of the State Department’s North American Unit (SRE), has already revealed that TC Energy will build a $5 billion gas pipeline in Veracruz.

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With information from Reuters

Aileen Morales

"Beer nerd. Food fanatic. Alcohol scholar. Tv practitioner. Writer. Troublemaker. Falls down a lot."

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