TC Energy, a prominent energy company in North America, recently announced a partnership with Mexico’s state-owned electric utility Comisión Federal de Electricidad (CFE) to develop a US$4.5 billion natural gas pipeline known as the offshore Southeast Gateway Pipeline. This project aims to supply natural gas to regions in central and southeast Mexico, providing clean and reliable energy to millions of people.
TC Energy is committed to finding sustainable solutions to move, generate, and store energy that North America relies on. The Southeast Gateway Pipeline is expected to be a 1.3 billion cubic feet per day, 715-kilometre offshore natural gas pipeline. This development will expand TC Energy’s secured capital program to $33 billion and enhance its 2021-2026 adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) growth outlook.
This partnership represents a significant milestone in the development of natural gas infrastructure in Mexico, marking a “first-of-its-kind strategic partnership” in CFE’s 85-year history. TC Energy President and CEO François Poirier expressed gratitude for the opportunity to collaborate with CFE, emphasizing the strengths that both companies bring to the project.
The Southeast Gateway Pipeline will be TC Energy’s second marine natural gas pipeline in Mexico, connecting coastal regions of Veracruz and Tabasco. The agreement includes the consolidation of previous Transition Services Agreements (TSAs) between TC’s subsidiary TGNH and CFE until 2055, overseeing new infrastructure projects in conjunction with CFE.
In addition to increasing TC Energy’s secured capital program to $33 billion, the US$4.5 billion Southeast Gateway Pipeline project aligns with the company’s goal of approving approximately $5 billion annually for high-quality energy infrastructure projects.
