June 26, 2019 / 9:06 PM / a month ago

Canadian diplomat questions respect for Mexican pipeline contracts

MEXICO CITY (Reuters) - Canada’s ambassador to Mexico slammed recent actions by Mexican state power company CFE on Wednesday, after the state-owned firm requested arbitration in a dispute over a natural gas pipeline built by a consortium involving a Canadian company.

Ambassador Pierre Alarie wrote in a post on Twitter that the Mexican government appears “not to wish to respect natural gas pipeline contracts,” and that he was “deeply concerned” over the signal it sends.

IEnova, a unit of U.S.-based Sempra Energy, has previously said the CFE is seeking arbitration over the terms of a contract the Mexican firm had signed in partnership with TransCanada Corp, now known as TC Energy, to build a natural gas pipeline from Texas to the Mexican Gulf coast port of Tuxpan.

Reporting by Ana Isabel Martinez, editing by G Crosse

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