Home Business-newBusiness Solutions urgently needed to supply natural gas to the Yucatan Peninsula (Concanaco)

Solutions urgently needed to supply natural gas to the Yucatan Peninsula (Concanaco)

by Yucatan Times
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“It is urgent that the Federal Electricity Commission and the private international construction companies of the pipeline come to an agreement since the international arbitration process requested by CFE will signficantly delay the distribution of natural gas to the Yucatan peninsula”, said José Manuel López Campos, president of the Confederation of Chambers of Commerce of Mexico, (Concanaco).

The business leader stressed that establishing an arbitration to achieve this work will increase the chances of energy shortage in the Yucatan Peninsula, with more blackouts, which damages local businesses and the productivity of  regional companies.

López Campos insisted that the agreement should be established as soon as possible since the arbitration process requested by CFE puts at risk the conclusion of the work, and therefore, the flow of natural gas to the peninsula.

CFE’s arbitration request regarding the contract with Canadian companies for the Texas marine pipeline will postpone the start of the operation to supply this fuel to the Yucatan Peninsula, and this will force the increase of electricity rates, will cause a lack of supply and that will come to the detriment of the economic operability of the companies and industries in the Yucatan.

The Concanaco claims for an immediate agreement because the lack of energy supply will lead to more blackouts that significantly affect the productive, bureaucratic and general consumption sectors.

López Campos pointed out that solutions are urgently needed for the supply of natural gas to the area, in order to have enough fuel to generate electricity and supply the energy, according to their needs.

The businessman indicated that the CFE, demands the company IEnova, 899 million dollars for damages, for the additional costs that the CFE had for the breach of contract, attributing IEnova the responsibility of not providing the service of transportation of natural gas on the agreed date.

The Texas-Tuxpan marine gas pipeline reached a total cost of 2.5 billion dollars, being one of the most important projects of the past six years, which will allow in the short term to transport 2.6 billion cubic feet of natural gas per day, which ensures the supply for the Yucatan Peninsula.

“On Monday June 24, the CFE sent a request for the initiation of international arbitration, by which it claims the nullity of clauses of the contract between the parties and the payment of damages, but according to IEnova that request does not prevent the public company from issuing a proof of acceptance of completion of the gas pipeline “.

López Campos pointed out that if the contract between the two parties is the product of an international public tender and its terms were accepted by mutual agreement, a solution should be reached as quickly as possible, so as not to delay any further the transportation of natural gas to the Yucatan Peninsula.

The Yucatan Times Newsroom

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