Mexico's CFE and ESENTIA Sign $300 Million Memorandum for Gas Project

(Reuters) — Mexican state power utility Comision Federal de Electricidad (CFE) said on Tuesday it had signed a memorandum of understanding with ESENTIA Energy Systems to develop natural gas infrastructure with a $300 million investment.

The agreement was signed on June 20 and aims to optimize existing pipelines and include new natural gas delivery points to serve CFE power plants and communities, the Mexican state power firm said in a statement.

"The agreement will also allow both parties to put an end to various pre-existing legal disputes," the power firm added.

In 2019, ESENTIA, known as Fermaca at the time, was at the center of a months-long dispute with Mexico's government over natural gas pipeline contracts signed under the previous government.

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