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The Deal between TC Energy and Mexican Utility is Concluded to Build $4.5 Billion Gas Pipeline
08/30/2022
TC Energy Corp. had reached a deal with a Mexican state utility to build a $4.5 billion natural gas pipeline, according to a company release on Aug. 4.
The natural gas to Mexico's central and southeast regions will be furnished by the 1.3 bcfd offshore Southeast Gateway Pipeline, the Canadian pipeline operator said.
Due to the most serious trade spat with Mexico over the United States-Mexico-Canada Agreement, Canada and the United States made the deal with Comisión Federal de Electricidad (CFE).
TC Energy and CFE in conjunction with the alliance also took the final investment decision (FID) on the 715-km Southeast Gateway. The pipeline will serve southeast Mexico, starting onshore in Tuxpan, Veracruz, then proceeding offshore, making landfall at Coatzacoalcos, Veracruz, and Dos Bocas, Tabasco.
TC Energy noticed that sanctioning the pipeline would expand its secured capital program to $33 billion and could complete its 2021-2026 adjusted EBITDA uptick outlook.
Additionally, a senior foreign ministry official in Mexico Roberto Velasco claimed last month that TC Energy had approved to build a $5 billion gas pipeline in the Gulf Coast state of Veracruz.
Subject to regulatory approvals from Mexico’s economic competition commission and its Regulatory Energy Commission, CFE will have the opportunity to hold a 15% equity interest in TGNH. Regulatory approvals related to CFE’s equity participation are expected to take up to 24 months.
TC Energy and the CFE have agreed to combine previous transportation service agreements (TSA) executed between TC Energy’s Mexico-based subsidiary, Transportadora de Gas Natural de la Huasteca (TGNH), and CFE in connection with shared natural gas pipelines in central Mexico under a single, US dollar-denominated take-or-pay agreement extending through 2055. This new TSA will also govern related new infrastructure projects to be developed.
These two companies also agreed to mutually finish presently suspended international arbitration (OGJ Online, Nov. 8, 2021) between the two related to the 886-MMcfd Tula-Villa de Reyes and Tuxpan-Tula (TXTL) pipelines, with TC Energy earning a return on and of all previous capital invested. TC Energy and CFE have also decided to work together to complete TXTL’s central segment, subject to fourth-quarter 2022 FID.
TC Energy builds and operates safe and reliable energy infrastructure. This includes 93,300 km (57,900 miles) network of natural gas pipelines, which supplies more than 25 percent of the clean-burning natural gas consumed daily across North America to heat homes, fuel industries, and generate power.
Also, the existing oil & liquids pipeline infrastructure, approximately 4,900 km (3,045 m), connects Alberta crude oil supplies to U.S. refining markets in Illinois, Oklahoma, Texas, and the U.S. Gulf Coast. The Keystone Pipeline System, the largest liquids pipeline asset, moves approximately 20 percent of western Canadian crude oil export to key refining markets. The company has located storage terminals in Canada and the U.S., including Hardisty, AB.; Cushing OK; and Houston, TX.
Meanwhile, TC Energy’s portfolio of energy infrastructure assets includes investments in seven power generation facilities with a combined generating capacity of approximately 4,200 megawatts (MW) – enough to power more than 4 million homes, and moreover, approximately 75 percent of our power capacity is emission-less.
If you are looking for more information about energy companies, their assets, and energy deals, please, contact our sales office mapping@hartenergy.com, Tel. 619-349-4970 or SCHEDULE A DEMO to learn how Rextag can help you leverage energy data for your business.
Growing Export of US Crude Oil Is Expected to Set Record This Quarter
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On 27 June, the analysts at Kpler spread the word that the exports of crude oil from the U.S. Gulf Coast could break a record 3.3 MMbbl/d this quarter as Europe has regard to U.S. crude which can outweigh sanctioned Russian oil. Due to Washington's decision to release 180 MMbbl of oil from the nation's Strategic Petroleum Reserve, U.S. exports have increased in the last three months, as it has flooded the domestic market. Exports to Europe are anticipated averaging approximately 1.4 MMbbl/d this quarter, about 30% higher than the year-ago quarter, meanwhile, export to Asia is set to decrease to less than 1 MMbbl/d. Despite that the U.S. has lost about 1 MMbbl/d of refining capacity since 2020, it also boosted exports thanks to the government’s intervention to back crude supplies which has had consequences in growth in exports. Throughput via the Port of Corpus Christi has grown by more than 150,000 bbl/d and has become 1.86 MMbbl/d. Nevertheless, Port of Houston exports also have been increasing since the third quarter of last year, they remain below pre-pandemic levels.
Pivot to the South: LNG Plants Under Development by Sempra Energy in Louisiana and Mexico
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Sempra Energy would develop the 4.0-mmtpa Vista Pacifico LNG export facility located next to the company's Terminal for Refined Products in Topolobampo in a bid to provide gas from the Permian basin in Texas and New Mexico to Asian markets. Once marketing begins, Sempra's management expects Vista Pacifico to be oversubscribed.
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Shell overturned a landmark court order demanding it cut emissions by nearly half. Is this a victory for Big Oil or just a delay in the climate accountability movement?
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Before it was Expand Energy, the largest natural gas-weighted exploration and production company in the U.S., it was Chesapeake Energy. This company faced and survived nearly every extreme the energy industry could throw, including bankruptcy. With its recent $7.4 billion merger with Southwestern Energy, Expand Energy has achieved a new milestone: it’s the largest natural gas producer in the U.S., powered by substantial reserves and resources across crucial shale regions.
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Oil companies across the Gulf of Mexico are springing into action as Tropical Storm Rafael bears down, marking yet another disruption in a storm-laden season. BP, Chevron, Equinor, and Shell are evacuating offshore staff and preparing for potential impacts on their platforms, an all-too-familiar ritual for Gulf operators this year.