- Mexican Pres. Lopez Obrador confirms a deal to end a standoff with several natural gas pipeline operators over contract prices, allowing them to avoid international arbitration and begin increasing gas deliveries across the country.
- The deal announced by Lopez Obrador and the head of state-run power utility CFE will reduce what Mexico pays the firms to transport natural gas.
- The government says the new deal will result in $4.5B in savings, or more than 30% of what the government was obliged to pay under the original contracts.
- Several pipelines, including the South Texas-Tuxpan submarine pipeline, which was completed in June, could begin operations within weeks.
- The agreement includes three companies involved in the project: TC Energy (NYSE:TRP), Sempra Energy's (NYSE:SRE) iEnova Mexican subsidiary and Carlos Slim's Grupo Carso (OTCPK:GPOVF).
- "This deal guarantees the supply of gas for the electric industry for many years, so that we won’t have outages, and for the development of national industry," Lopez Obrador says.
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