The government of Mexico has reached an agreement with gas pipeline operators to reduce the rates of gas transportation by 28% on average over 25 years, saving an estimated US$4.5bn for Mexican taxpayers and avoiding an international dispute. The Federal Electricity Commission (Comision Federal de Electricidad, CFE) had been seeking for months to renegotiate terms related to transport services on the gas pipeline construction contracts awarded in June 2016. The government is still negotiating with Fermaca, which was contracted to build two of the seven gas pipelines under dispute.
In particular, the CFE was seeking to obtain reimbursement for some payments on the US$2.5bn construction contract for the Sur de Texas-Tuxpan gas pipeline built by TransCanada (now renamed TC Energy) and IEnova in Mexico. The 27 bcm/year gas pipeline project was completed in June 2019 and stretches over 800 km from offshore gas fields in the Gulf of Mexico, at the border point near Brownsville (Texas, US) to Tuxpan, in the state of Veracruz (Mexico).
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