Mexico’s big bet on the future of fossil fuels will get help from a Canadian pipeline company
Mexico is making a big bet on the future of fossil fuels with some help from a Canadian pipeline giant.
Bucking broad global sentiment urging a shift away from fossil fuels, Mexico is building a large oil refinery on its Gulf Coast, in the southeastern state of Tobasco. Once operational, the new refinery is expected to expand Mexico’s oil-processing capacity by 20 per cent, while reducing its dependence on imported gasoline, diesel and jet fuel.
Tobasco Governor Carlos Manuel Merino Campos, who is visiting Canada this week, said the pipeline will deliver gas that could be used to power the refinery as well as other industrial firms in the growing region. Merino Campos also said the deal with TC Energy shows the country’s openness to foreign investment — a remark that appeared to rebut recent trade complaints from the United States suggesting that Mexico’s energy strategy discriminates against foreign companies.
“This agreement with (TC Energy) is something necessary for Mexico and it shows that Mexico wants to have private investors in our country,” said Merino Campos.
TC Energy will partner with Mexico’s state-owned electric utility, Comisión Federal de Electricidad (CFE), the utility’s first public-private partnership, to build the 715-kilometre offshore pipeline. The project is anticipated to be in-service by 2025, just three years after the joint final investment decision was announced — a pace that appears blistering compared with the hurdles and delays connected with another high-profile TC Energy project, the controversial Coastal GasLink pipeline.