South Texas-Tuxpan Pipeline Begins Shipping NG from Texas to Mexico

IEnova, a Mexico-based company announced on Tuesday that the long-awaited South Texas-Tuxpan pipeline whose inauguration had been held up by a dispute between contractors and the Federal Electricity Commission has begun sending natural gas to Mexico from Texas.

The pipeline has a capacity to transport 2.6 billion cubic feet of natural gas a day and was built by IEnova and the Canadian company TC Energy. The pipeline was ready to start moving gas in July but the start of operations was delayed by a Federal Electricity Commission initiative to renegotiate the contracts, which were signed before President López Obrador took office.

“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.”

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.