Comprehensive Energy Data Intelligence
Information About Energy Companies, Their Assets, Market Deals, Industry Documents and More...
The Deal between TC Energy and Mexican Utility is Concluded to Build $4.5 Billion Gas Pipeline
08/30/2022
TC Energy Corp. had reached a deal with a Mexican state utility to build a $4.5 billion natural gas pipeline, according to a company release on Aug. 4.
The natural gas to Mexico's central and southeast regions will be furnished by the 1.3 bcfd offshore Southeast Gateway Pipeline, the Canadian pipeline operator said.
Due to the most serious trade spat with Mexico over the United States-Mexico-Canada Agreement, Canada and the United States made the deal with Comisión Federal de Electricidad (CFE).
TC Energy and CFE in conjunction with the alliance also took the final investment decision (FID) on the 715-km Southeast Gateway. The pipeline will serve southeast Mexico, starting onshore in Tuxpan, Veracruz, then proceeding offshore, making landfall at Coatzacoalcos, Veracruz, and Dos Bocas, Tabasco.
TC Energy noticed that sanctioning the pipeline would expand its secured capital program to $33 billion and could complete its 2021-2026 adjusted EBITDA uptick outlook.
Additionally, a senior foreign ministry official in Mexico Roberto Velasco claimed last month that TC Energy had approved to build a $5 billion gas pipeline in the Gulf Coast state of Veracruz.
Subject to regulatory approvals from Mexico’s economic competition commission and its Regulatory Energy Commission, CFE will have the opportunity to hold a 15% equity interest in TGNH. Regulatory approvals related to CFE’s equity participation are expected to take up to 24 months.
TC Energy and the CFE have agreed to combine previous transportation service agreements (TSA) executed between TC Energy’s Mexico-based subsidiary, Transportadora de Gas Natural de la Huasteca (TGNH), and CFE in connection with shared natural gas pipelines in central Mexico under a single, US dollar-denominated take-or-pay agreement extending through 2055. This new TSA will also govern related new infrastructure projects to be developed.
These two companies also agreed to mutually finish presently suspended international arbitration (OGJ Online, Nov. 8, 2021) between the two related to the 886-MMcfd Tula-Villa de Reyes and Tuxpan-Tula (TXTL) pipelines, with TC Energy earning a return on and of all previous capital invested. TC Energy and CFE have also decided to work together to complete TXTL’s central segment, subject to fourth-quarter 2022 FID.
TC Energy builds and operates safe and reliable energy infrastructure. This includes 93,300 km (57,900 miles) network of natural gas pipelines, which supplies more than 25 percent of the clean-burning natural gas consumed daily across North America to heat homes, fuel industries, and generate power.
Also, the existing oil & liquids pipeline infrastructure, approximately 4,900 km (3,045 m), connects Alberta crude oil supplies to U.S. refining markets in Illinois, Oklahoma, Texas, and the U.S. Gulf Coast. The Keystone Pipeline System, the largest liquids pipeline asset, moves approximately 20 percent of western Canadian crude oil export to key refining markets. The company has located storage terminals in Canada and the U.S., including Hardisty, AB.; Cushing OK; and Houston, TX.
Meanwhile, TC Energy’s portfolio of energy infrastructure assets includes investments in seven power generation facilities with a combined generating capacity of approximately 4,200 megawatts (MW) – enough to power more than 4 million homes, and moreover, approximately 75 percent of our power capacity is emission-less.
If you are looking for more information about energy companies, their assets, and energy deals, please, contact our sales office mapping@hartenergy.com, Tel. 619-349-4970 or SCHEDULE A DEMO to learn how Rextag can help you leverage energy data for your business.
Shell's Midstream Assets in TX and LA (Gulf area)
On October 19, Shell USA completed the almost $1.96 billion acquisition of the master limited partnership. The company paid $15.85 in cash for every common unit representing limited partner interests in SHLX not held by Shell USA or its affiliates. A subsidiary of Shell USA has 269,457,304 SHLX common units or roughly 68.5% of SHLX common units.
Centennial, Colgate Merger Is Completed on Sep.1
The completion of the merger between Centennial Resource Development Inc. and Colgate Energy Partners II LLC happened on Sept. 1, sealing the debut of Permian Resources Corp., which is considered the largest pure-play E&P company in the Delaware Basin. Permian Resources’ idea was to combine two successful E&P companies, creating a better, stronger, and more strategically compelling company. Centennial and Colgate announced an agreement to merge in May, denying rumors that Colgate, a privately held independent Midland-based company, had been seeking an IPO. The merger estimated Colgate at about $3.9 billion and consists of 269.3 million shares of Centennial stock, $525 million of cash, and the assumption of approximately $1.4 billion of Colgate’s outstanding net debt. Permian Resources, being the combined company, has a deep inventory of “high-quality” drilling locations on around 180,000 net acres the companies anticipate will provide more than $1 billion of free cash flow in 2023 at current strip prices, in accordance with the company release on Sept. 1.
The U.S. has overtaken Saudi Arabia and Russia to become the world's largest oil and gas producer. In 2024, America's oil output has surpassed last year's record by 1.4%, reaching new heights. Even as oil-producing countries in the Middle East cut back, the U.S. continued to ramp up production after a downturn in 2020, establishing itself as a dominant force in the global market. In terms of numbers, U.S. oil production jumped from an average of 2.93 million barrels per day in 2023 to 13.12 million barrels per day in 2024, marking a significant 7.1% increase.
Kinetik Holdings recently announced a series of transactions in the energy sector. They struck a deal to buy Durango Permian infrastructure for $765 million. At the same time, they're selling their 16% share in the Gulf Coast Express Pipeline to ArcLight Capital Partners for $540 million. The total purchase cost includes $510 million in cash paid immediately and an additional $30 million that will be paid later, depending on whether they decide to expand further.
Recently, the Permian has seen significant acquisitions: Exxon Mobil purchased Pioneer Natural Resources for about $60 billion. Diamondback Energy's $26 billion deal to acquire Endeavor Energy Resources is currently on hold due to requests from the U.S. Federal Trade Commission. Occidental’s acquisition of CrownRock for $12 billion in the Midland.