The Canadian energy infrastructure group TC Energy has reached an agreement with the Mexican state-owned power utility CFE (Federal Electricity Commission) to complete the Tuxpan-Tula gas pipeline in Mexico, whose construction has been stalled over land crossing concerns. The 276-km long pipeline will deliver natural from Tuxpan, in the state of Veracruz, to gas-fired power plants in this state and will connect the Mayakan gas pipeline in the states of Campeche and Tabasco.
In August 2019, the government of Mexico reached an agreement with gas pipeline operators to cut the rates of gas transportation by 28% on average over 25 years. The CFE had been seeking for months to renegotiate terms related to transport services on the gas pipeline construction contracts awarded in June 2016. 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.