• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 11 hours Solving The Space Problem For America’s Solar Industry
  • 22 hours How Far Have We Really Gotten With Alternative Energy
  • 8 hours Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 3 hours If hydrogen is the answer, you're asking the wrong question
  • 4 days Investment in renewables tanking
  • 8 days "Mexico Plans to Become an Export Hub With US-Drilled Natural Gas" - Bloomberg - (See image)
What Erdogan's Reelection Means For Sweden's NATO Bid

What Erdogan's Reelection Means For Sweden's NATO Bid

Having won reelection, Erdogan may…

Mexican President Decides To Re-Route Crucial Pipeline

A plan announced by Mexico’s President to re-route a pipeline under construction in order to go around indigenous lands has sparked concern among some in the industry regarding future energy projects.

BNN Bloomberg cites analysts as saying the plan could create a risky precedent for indigenous communities that are already protesting a number of pipeline projects. This has already led to a decline in investments.

President Andres Manuel Lopez Obrador announced the plan to re-route the pipeline last week. Currently under construction, the project managed by TC Energy (former TransCanada) will transport natural gas from Veracruz to Puebla and Hidalgo across 176 miles that include an area that is considered sacred by several local communities in the state of Puebla.

“Even if we have to pay, the gas pipeline will not go through the sacred hills,” Lopez Obrador said, as quoted by Reuters, over the weekend, after a consultation with four local indigenous communities.

“They are trying to avoid any legal problems, and international controversies,” Wood Mackenzie gas analyst Rodrigo Rosas told Bloomberg.

Indeed, anti-pipeline activism has turned into a trend in recent years. Indigenous communities in both the United States and Canada have been active in opposing several large-scale projects, including the Keystone XL pipeline, Dakota Access, and, in Canada, the Trans Mountain expansion.

However, not all agree that the re-routing of the Tuxpan-Tula pipeline in Mexico is a problem. In fact, some see it as good news.

A Natural Gas Intel article by Andrew Baker quoted a Mexico-based energy consultant who said the re-routing could actually speed up the completion of the pipeline. This will in turn allow several power plants in the region to switch from more expensive fuel oil to cheap gas.


“They [the Mexico state power utility CFE] need it to be done,” Gonzalo Monroy said. “I think that it was actually a very pragmatic decision by López Obrador, saying if they have to pay extra for the rerouting, so be it.”

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News