TC Energy's Mexican Gulf pipeline faces environmental opposition

TC Energy's US$4.5bn Southeast Gateway pipeline project in Mexico is facing its first opposition from a series of environmental groups.

In a letter signed by 18 civil society organizations, including Greenpeace México, and coordinated by the Mexican center for environmental law (Cemda), the group said the project posed a "grave risk" of environmental damage, given that the pipeline route passes through the gulf's 600km southwestern coral reef corridor.

The organizations recommended that the project's two environmental impact statements submitted to the energy, security and environment agency ASEA (part of environment ministry Semarnat) be rejected so that the company can submit a single statement encompassing the two sections of the project.

According to Cemda, the Mexican supreme court has ruled that large infrastructure projects are forbidden from being intentionally broken up into smaller stages in order to make the permitting process easier, as that would "prevent a comprehensive analysis of the risks ... and the cumulative environmental impact" of the whole project.

As of press time, TC Energy had not responded to a request for comment from BNamericas.

The pipeline, owned by TC Energy subsidiary TGNH, wold have three onshore connections and is designed to feed the Olmeca oil refinery in Tabasco state by linking Tuxpan in Veracruz state with Coatzacoalcos to the south and, through a branch line, Dos Bocas port in Tabasco state.

The Coatzacoalcos onshore connection would also allow gas to flow from Tuxpan to the planned US$435mn Jaltipán-Salina Cruz pipeline, which is planned to cross the Tehuantepec isthmus and feed public utility CFE's Salina Cruz LNG project, as well as the Salina Cruz-Tapachula pipeline branch line.

The project, developed in partnership with CFE, is designed to transport 1.3Bf3/d (billion cubic feet per day) across its 715km length. It is slated to start commercial operations in mid-2025.