Reuters: TC Energy (NYSE: TRP) and the Mexican state utility Comision Federal de Electricidad reached an agreement to build a $4.5 billion pipeline, putting an end to international arbitration proceedings.
Canada and the U.S. are having their worst trade battle with Mexico over energy regulations under the USMCA (USCMA).
TC Energy said it would partner with CFE on the Southeast Gateway Pipeline. The 715-kilometer (444-mile) pipeline will bring gas to Mexico’s developing central and southeast regions.
The two firms decided to integrate existing assets, including the Tamazunchale pipeline and the Tula-Villa de Reyes and Tuxpan-Tula pipelines.
Their public-private collaboration includes a take-or-pay, dollar-denominated transit deal through 2055.