TC Energy Begins Southeast Gateway Pipeline Toll Collection

TC Energy Corporation has commenced collecting tolls from CFE for the Southeast Gateway natural gas pipeline. The company confirmed that CFE made its May payment on time, as per the contract.

The Southeast Gateway pipeline is a 715km natural gas pipeline with a capacity of 1.3Bcf/d. TC Energy reports the project was completed about 13% under its original cost estimate and in less than three years from its final investment decision. This pipeline marks the first major energy infrastructure project constructed under TC Energy's public-private partnership with the CFE.

"The successful completion of the Southeast Gateway pipeline reflects the unwavering commitment of our team, the CFE and the Ministry of Energy (SENER) to support Mexico’s expanding energy demand and future economic development," says François Poirier, President and Chief Executive Officer, TC Energy.

TC Energy is working with Mexico's newly constituted National Energy Commission (CNE) to obtain approval for regulated rates. This approval is necessary to provide service to users on the Southeast Gateway pipeline.

The Government of Mexico has announced plans to add about 8.5GW of newly installed capacity from natural gas power plants to advance economic growth and energy security. The Southeast Gateway pipeline, along with TC Energy’s other assets in Mexico, is positioned to support this initiative and contribute to the country's transition to lower-emission, more reliable energy sources. Natural gas has become an increasingly significant fuel for electricity generation in Mexico, playing a transitional role as the country seeks to increase its clean energy participation.