TC Energy has signed an agreement to divest Energía Occidente de México, the owner of the Guadalajara-Manzanillo Pipeline in Mexico, to affiliates of ESENTIA Energy Development for a total consideration of $400m (C$560m).
The deal covers the transfer of the entire equity interest in Energía Occidente de México.
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The Guadalajara-Manzanillo Pipeline extends approximately 313km from the Guadalajara area in Jalisco to Manzanillo, Colima.
The pipeline system links to the LNG Manzanillo regasification terminal on Mexico’s Pacific coast and is made up of two main sections.
The first section is around 5.5km long, has a 24in diameter and is designed to move up to 500 million cubic feet per day (mcf/d) of natural gas. It runs between the liquefied natural gas (LNG) terminal and Comisión Federal de Electricidad’s CT Manzanillo power station.
The second section stretches roughly 307.3km with a 30in diameter and has a transport capacity of nearly 360mcf/d.
This part runs from the Manzanillo region towards Guadalajara, connecting with both the national SISTRANGAS network and ESENTIA’s Villa de Reyes-Aguascalientes-Guadalajara pipeline system close to Guadalajara in Jalisco.
Completion of the transaction is expected in the first half of 2027, subject to regulatory approvals, consents and customary closing conditions.
Following the sale, TC Energy will continue to own and operate its other natural gas pipelines in Mexico. This remaining network includes around 3,300km of pipeline with a total transportation capacity of 8.7 billion cubic feet per day.
TC Energy president and CEO François Poirier said: “This transaction reflects our continued focus on portfolio optimisation and long-term value creation. 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.
“With more than 30 years of history in Mexico, and as the largest Canadian investor in the country, TC Energy remains committed to reliably delivering the natural gas that supports the country’s expanding energy needs, strengthens energy security and enables future economic development.”
Upon closing, ESENTIA will integrate the Guadalajara-Manzanillo Pipeline into its existing infrastructure.
According to ESENTIA, the combined network will make it the only private company with a natural gas pipeline system connecting the Permian Basin in Texas, US, to Mexico’s Pacific coast.
ESENTIA CEO Daniel Bustos said: “The acquisition is consistent with ESENTIA’s strategy to build a cohesive cross-border transportation system through disciplined M&A [mergers and acquisitions] and low-risk opportunities that capitalise on our existing infrastructure.
“The acquisition would expand ESENTIA’s ability to serve existing and prospective customers within the combined system’s area of influence, including demand from power generation, industrial customers and potential LNG-related projects, and help reinforce ESENTIA’s position as one of Mexico’s leading natural gas transportation platforms.”
The acquisition will be financed using available liquidity and credit facilities and is not expected to increase ESENTIA’s gross indebtedness.
Citigroup is providing financial advice to ESENTIA on this transaction.
In March 2026, TC Energy announced that its Coastal GasLink project has signed commercial agreements with LNG Canada for its second development phase.
