Sempra Energy’s subsidiary IEnova and Mexico’s Federal Electricity Commission have agreed to resolve a dispute regarding the transportation service contracts of the Guaymas – El Oro and Sur de Texas – Tuxpan pipelines

Pipeline sunset.

Image: With the agreements in place, IEnova expects the Sur de Texas – Tuxpan pipeline to begin commercial operations. Photo: courtesy of Outgunned21/

Infraestructura Energética Nova (IEnova) has reached an agreement with the Mexican government to settle a dispute pertaining to the transportation service contracts of the Guaymas – El Oro pipeline and the underwater Sur de Texas – Tuxpan pipeline.

The agreements reached by IEnova and the state-owned Federal Electricity Commission (CFE) define a new tariff structure and also consider an extension by 10 years for both the contracts.

IEnova, which is the Mexican subsidiary of US-based Sempra Energy, said that the agreements satisfy interests of both the parties. The agreements are also said to provide a benefit for the CFE, while keeping the overall integrity of the original contracts intact.

The company, in a statement, said: “With these agreements, the parties will work together to take all the necessary legal actions to end the international arbitration processes corresponding to the beforementioned pipelines, as well as to provide certainty to their corresponding contracts.”

IEnova agreement with CFE will enable commissioning of the Sur de Texas – Tuxpan pipeline

Completed in June 2019, the 800km long Sur de Texas – Tuxpan pipeline was developed by the company in partnership with TC Energy. The pipeline, which has been predominantly laid under the Gulf of Mexico has been designed to deliver 2.6 billion of natural gas to the Mexican state of Veracruz.

The agreement with CFE is expected to pave way for the immediate launch of commercial operations of the Sur de Texas – Tuxpan marine pipeline.

On the other hand, the Guaymas – El Oro pipeline, located in northern Mexico, is set to resume operations with the CFE committing to provide support for the same. A dialogue is expected to be take place with the Yaqui community regarding the operations of the pipeline.

Sempra Energy, in a statement, said: “Sempra Energy is pleased that IEnova was able to reach a mutually agreeable resolution to the contracts with CFE on these important pipelines.

“The Sur de Texas-Tuxpan and Guaymas-El Oro pipelines are among Mexico’s most important infrastructure projects, bringing more reliable supplies of clean U.S. natural gas to Mexico to help meet the growing energy needs of the country for generations to come.”