IENova Reaches Gas Pipeline Deal with Mexico

Sempra Energy’s IENova said August 27 it had reached an agreement with Mexico’s state utility CFE covering the continuing development of the Guaymos-El Oro pipeline and the Sur de Texas-Tuxpan pipeline, which is a joint venture of IENova and Canada’s TC Energy.

The new agreement establishes new tariff structures for both pipelines and extends contract terms for 10 years. Both pipelines provide for increased natural gas imports from the US to power CFE’s generating stations throughout Mexico.

“Sempra Energy is pleased that IEnova was able to reach a mutually agreeable resolution to the contracts with CFE on these important pipelines,” Sempra Energy said in a statement. “The Sur de Texas-Tuxpan and Guaymas-El Oro pipelines are among Mexico’s most important infrastructure projects, bringing more reliable supplies of clean US natural gas to Mexico to help meet the growing energy needs of the country for generations to come.” 

The agreement commits CFE to supporting the restart of Guaymos-El Oro project, part of IENova’s Sonora pipeline which has been stalled for more than two years in a dispute with local Yaqui indigenous communities. And it provides for commercial operations on the Sur de Texas-Tuxpan line to begin – more than two months after TC Energy and IENova announced completion of the pipeline.