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LatinNews Regional Monitor: Mexico - 18 September 2019

In brief: Operations begin on gas pipeline after deal with Mexican gov’t

* Canada’s TC Energy Corp and IEnova, a Mexican subsidiary of US firm Sempra Energy, have announced the start of commercial operations of the 772km ‘Sur de Texas-Tuxpan’ underwater gas pipeline, which is expected to transport 2.6bn cubic feet of natural gas daily. The pipeline will supply electricity generation plants in Altamira (Tamaulipas state) and Tuxpan (Veracruz state), as well as several plants in central Mexico. The commencement of operations follows the signing of a re-negotiated contract, announced by Mexico’s President Andrés Manuel López Obrador on 27 August, between the Mexican government, the federal electricity commission (CFE), and the pipeline construction companies. Robert Jones, president of TC Energy in Mexico, said: “this important energy infrastructure project will provide a fundamental link between the abundant supply of low-cost natural gas and the growing markets in Mexico for decades to come”.

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