Houston Chronicle by Sergio Chapa Aug. 6, 2019
Texas Gov. Greg Abbott issued a letter asking Mexican President Andres Manuel Lopez-Obrador to end a political stalemate that has left at least $3 billion of payments and contracts for several natural gas pipelines in limbo.
Lopez-Obrador has launched a review and requested international arbitration proceedings to undo the payments and strike force majeure clauses on contracts for seven natural gas pipelines that were built by four companies across Mexico. The pipelines, either idle or incomplete, are not delivering gas, but the clauses allowed the companies to collect full payment due to delays and circumstances beyond their control.
Under Lopez-Obrador’s predecessor Enrique Peña-Nieto, Mexico’s Federal Electricity Commission awarded multibillion dollar pipeline contracts to Canadian pipeline operator TC Energy, a Mexican subsidiary of San Diego utility company Sempra Energy and Mexican construction firms Grupo Carso and Fermaca.
The goal was to switch Mexico’s coal and oil-fired power plants to cleaner-burning natural gas, but the seven projects faced various delays ranging from the weather and landowner issues to hostility from indigenous groups — and even alleged acts of extortion at the hands of local government officials.
Pipeline problems
Mexican President Andres Manuel Lopez-Obrador has launched an investigation and requested international arbitration proceedings to undo the payments and force majeure clauses on contracts for seven pipeline projects to move natural gas from the United States to power plants and factories south of the border.
More:
https://www.houstonchronicle.com/business/energy/article/Abbott-to-AMLO-Wrap-up-pipeline-probe-and-get-14281518.php
