Renewable Energy

Mexico president pushes back after Canada flags concern over contract dispute

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Reuters
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Credit: REUTERS/CARLOS JASSO

Mexican President Andres Manuel Lopez Obrador said on Thursday that contracts awarded to build gas pipelines by the previous government were 'abusive' in response to concerns expressed by Canada's ambassador about the contracts being honored.

MEXICO CITY, June 27 (Reuters) - Mexican President Andres Manuel Lopez Obrador said on Thursday that contracts awarded to build gas pipelines by the previous government were 'abusive' in response to concerns expressed by Canada's ambassador about the contracts being honored.

On Tuesday, Mexican state power utility CFE said it would seek to negotiate a "fairer" resolution to contractual disputes over pipelines being built by companies including Mexico's IEnova IENOVA.MX and Canada's TC Energy TRP.TO.

The Canadian ambassador, Pierre Alarie, wrote on Twitter on Wednesday that the Mexican government appears "not to wish to respect natural gas pipeline contracts," and said he was "deeply concerned" over the signal being sent.

(Reporting by Dave Graham and Diego Ore)

((dave.graham@thomsonreuters.com; +52 1 55 5282 7146; Reuters Messaging: dave.graham.thomsonreuters.com@reuters.net))

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