TC Energy to Sell Major Mexican Natural Gas Pipeline to ESENTIA for $400 Million

TC Energy Corp. has agreed to sell its Guadalajara-Manzanillo Pipeline to affiliates of ESENTIA Energy Development for $400 million (CAD 560 million) as part of an ongoing strategy to trim non-core assets and fund higher-priority projects across North America.

The Calgary-based energy infrastructure company announced Monday that it signed a definitive agreement to transfer ownership of Energía Occidente de México, the operating entity behind the critical pipeline system.

The transaction is expected to close in the first half of 2027, pending customary closing conditions and regulatory approvals.

Stretching 313 kilometers (194 miles), the Guadalajara-Manzanillo Pipeline plays a vital role in central Mexico’s regional energy grid. The system has a transportation capacity of up to 500 million cubic feet of natural gas per day.

It connects liquefied natural gas imports near the Pacific port city of Manzanillo and continental gas supplies near Guadalajara directly to key power generation plants and industrial customers throughout the states of Colima and Jalisco.

Company executives framed the divestment as a disciplined capital move aimed at shifting resources away from mature infrastructure to fuel higher-yielding opportunities.

“This transaction reflects our continued focus on portfolio optimization and long-term value creation,” said François Poirier, TC Energy president and chief executive officer.

“The transaction will support our disciplined capital allocation strategy, creating optionality to redeploy proceeds from a mature asset towards high-value growth opportunities across our North American footprint.”

Poirier added that TC Energy remains committed to Mexico, where it has operated for more than three decades as the largest Canadian investor in the country.

TC Energy and ESENTIA said they will coordinate closely to ensure a safe transition of operations during the handoff.

Despite the sale of the Guadalajara-Manzanillo pipeline, TC Energy will still maintain a dominant energy presence in Mexico.

The company will continue to own and operate a broader natural gas network spanning approximately 3,300 kilometers, with an installed transportation capacity of 8.7 billion cubic feet per day to meet the country’s expanding energy demands.