Español

 

Guyana


Trinidad
& Tobago




Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

Resolution to disputes between Mexico CFE, gas pipeline operators soon -Lopez Obrador

Edgard Garrido/Reuters

Mexico's President Andres Manuel Lopez Obrador attends a news conference at the National Palace in Mexico City, Mexico July 22, 2019.

By John Hilfiker and J. Robinson / Platts

MEXICO CITY
Petroleumworld 08 20 2019

Contract disputes between the Mexican government and natural gas pipeline operators are reportedly close to an end, indicating that the long-awaited Sur de Texas-Tuxpan marine pipeline could begin operating later this month.

State-owned power generator CFE and private natural gas pipeline operators could finalize agreements to modify terms of the disputed contracts by this Thursday, Mexican President Andres Manuel Lopez Obrador said in a morning briefing to the public.

Arbitration in international court may be avoided for all seven pipelines, a process that TC Energy said could have extended into early 2021.

According to Lopez Obrador, a Mexican company came to resolutions first. The president did not specify a specific company or project name, but this may indicate that Grupo Carso or Fermaca may have set the tone. The companies accepted the dialogue and the revision of the conditions of the contracts presented by the CFE, Lopez Obrador said.

Pipeline operators had declared forces majeure amid unforeseen delays in pipeline construction, which were largely the result of conflicts with indigenous groups over land usage and ownership.

CFE owns the majority of the new pipeline capacity in question and has been forced to make capacity payments to Grupo Carso, IEnova, TC Energy and Fermaca for pipelines that were incomplete or delayed.

On June 24, just two weeks after the Sur de Texas-Tuxpan Pipeline (STTP) reached mechanical completion, CFE sent a request for arbitration over capacity payments made on the project to Marina del Golfo -- the joint-venture company owned by the pipeline's developers TC Energy and IEnova.

CFE's subsequent refusal to issue a proof of acceptance has delayed the startup of service on the project, stranding gas contracted for export in South Texas and leaving Mexico short on much-needed supply from the US.

In the meantime, CFE has hedged much of the lost supply from LNG imports. Lower global gas prices hovering around $4-$5/MMBtu have made imports of the super-cooled fuel less costly this summer compared with last.

IMPACT

The STTP system is the only pipeline among those in dispute that is complete and could start flowing natural gas following final closure of the contract negotiations.

Platts Analytics estimates that the marine pipeline could flow as high as 1 Bcf/d based on downstream connectivity and modifications. The STTP system will deliver gas to the Altamira V power plant, the 500 MMcf/d Monte Grange interconnect and the TC Energy Tamazunchale Pipeline at Naranjos.

The new pipeline, coupled with the Cempoala Compressor Station reversal project, should allow supply to flow into southern Mexico, an area that has been subject to shortages this year on falling domestic production.

 



Story byJohn Hilfiker and J. Robinson from SPGlobal Platts

spglobal.com/platts / 08 19 2019

________________________


We invite you to join us as a sponsor.Circulated Videos, Articles, Opinions and Reports which carry your name and brand are used to target Entrepreneurs through our site, promoting your organization’s services. The opportunity is to insert in our stories pages short attention-grabbing videos, or to publish your own feature stories.

________________________

Copyright© 1999-2019 Petroleumworld or respective author or news agency. All rights reserved.

We welcome the use of Petroleumworld™ (PW) stories by anyone provided it mentions Petroleumworld.com as the source.

Other stories you have to get authorization by its authors. Internet web links to http://www.petroleumworld.com are appreciated.

Petroleumworld welcomes your feedback and comments, share your thoughts on this article, your feedback is important to us!

We invite all our readers to share with us
their views and comments about this article.

Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

Twitter: @petroleumworld1


TOP

Contact: editor@petroleumworld.com,

Editor & Publisher: Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2019, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2019, Petroleumworld   / Elio Ohep - All rights reserved
This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.