CFE, Esentia Energy Systems Partner for Natural Gas Projects
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CFE, Esentia Energy Systems Partner for Natural Gas Projects

Photo by:   Marcin Jozwiak
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Karin Dilge By Karin Dilge | Journalist and Industry Analyst - Wed, 06/28/2023 - 02:12

CFE has reached an agreement with Esentia Energy Systems for the creation of new natural gas infrastructure in the country. Through a strategic alliance and an investment of US$300 million, both companies aim to optimize the use of existing pipelines and add new natural gas delivery points.

The agreement, signed on June 20, 2023, has as its main objective to supply natural gas to CFE's power plants, as well as other communities and sectors that will benefit from competitive access to this energy source. 

Moreover, the agreement will resolve pre-existing legal disputes between CFE and Esentia Energy Systems. In September 2019, CFE and Esentia (formerly Fermaca) concluded a negotiation related to two gas pipeline contracts that were undergoing international arbitration processes.

The memorandum of understanding was signed by CFE Director, Manuel Bartlett, and Esentia Director, Fernando Tovar, in the presence of the CEO of CFEnergía, Miguel Reyes Hernández.

Strategic alliances have strengthened CFE's position in the energy sector and have helped resolve controversies with private companies. According to Reyes, this agreement lays the foundation for the development of a strategic gas pipeline that will connect CFE's infrastructure projects with other private companies, states a CFE press release.

CFE is working with private companies in natural gas projects representing investments of US$12 billion. The federal commission’s project portfolio includes the Puerta del Sureste natural gas pipeline in the Gulf of Mexico with Canadian firm TC Energy. CFE also plans to build another pipeline with Grupo Carso from Caborca, Sonora, to Mexicali, Baja California. 

Additionally, CFE has plans to build liquefied natural gas (LNG) plants for re-export to Asia and the EU, alongside US company New Fortress. The commission is also involved in the construction of five combined-cycle power plants, Reyes told Bloomberg Línea.

Photo by:   Marcin Jozwiak

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