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Mexico threatens cancelling marine pipeline authorization

04/19/2021
Mexico threatens cancelling cross-border marine pipeline authorization

Photo: Agencia Reforma (Archivo/ Mariela Trinidad)

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• CANCELLATION: The López Obrador administration has notified private developers of the South Texas-Tuxpan marine gas pipeline (SDTT) that it could revoke the authorization granted to use Mexico’s seabed areas alleging they have not complied with terms of the concession agreement.

 

• LITIGATION: According to a lawsuit filed in March by IMG -a partnership between the Mexican subsidiaries of US utility Sempra Energy and Canadian pipeline operator TC Energy-, the Mexican government argues that it has not complied with the required collateral for exploiting marine areas.

 

• COMPLIANCE: “It is not feasible to continue granting said authorization, until as long as it does not prove due compliance with the conditions of the title”, the Mexican Ministry of Communications and Transport said in an official notification cited by IMG in its litigation.

 

• IMPORTS: Mexico’s natural gas imports by pipeline from the US reached 5.6 billion cubic feet per day (Bcf/d) in February of which 26 percent is estimated flowed through the SDTT pipeline according to Mexican figures. SDTT went in-service in 2019 after delays by the López Obrador administration.

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  • Home
  • Opinion
    • Amy Glover
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    • Carlos Elizondo
    • Cecilia Farfán
    • David Shields
    • Gerónimo Gutiérrez
    • Guest Column
    • Jorge Suárez Velez
    • Joy Olson
    • Luis Rubio
    • Mia Armstrong
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    • Vanda Felbab-Brown
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© 2019 Mexico Today.