TC Energy Agrees to Sell Mexico Gas Pipeline for $400M
TC Energy has agreed to sell its Guadalajara-Manzanillo natural gas pipeline in Mexico to affiliates of ESENTIA Energy Development for C$560 million, or approximately US$400 million, as the company reallocates capital toward other North American growth projects.
By Carolina Curiel
Published September 23, 2026
What Readers Should Know
- TC Energy has agreed to sell the entity that owns the Guadalajara-Manzanillo Pipeline to affiliates of ESENTIA.
- The gross purchase price is C$560 million, equivalent to approximately US$400 million.
- The 313-kilometre pipeline can transport up to 500 million cubic feet of natural gas per day.
- The transaction is expected to close in the first half of 2027, subject to regulatory approvals, consents and customary closing conditions.
- After closing, TC Energy expects to retain approximately 3,300 kilometres of natural gas pipelines in Mexico with 8.7 Bcf/d of installed transportation capacity.
MONTREAL (Oil Monster): TC Energy has entered into a definitive agreement to sell Energía Occidente de México, the entity that owns the Guadalajara-Manzanillo natural gas pipeline, to affiliates of ESENTIA Energy Development.
The transaction carries a gross purchase price of C$560 million, or approximately US$400 million.
Transaction Expected to Close in First Half of 2027
TC Energy said the transaction is expected to close during the first half of 2027.
Completion remains subject to customary closing conditions, regulatory approvals and required consents.
TC Energy and ESENTIA said they will work together to support a safe and orderly transition of the natural gas system.
Pipeline Moves Up to 500 MMcf/d of Natural Gas
The Guadalajara-Manzanillo Pipeline extends approximately 313 kilometres, or 194 miles, across western Mexico.
The system can transport up to 500 million cubic feet of natural gas per day.
It connects imported LNG supply near Manzanillo and continental gas supply near Guadalajara with power plants and industrial customers in the states of Colima and Jalisco.
TC Energy says the system entered service in 2011 and operates under a 25-year contract with Mexico’s Comisión Federal de Electricidad.
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TC Energy Plans to Redeploy Sale Proceeds
TC Energy President and CEO François Poirier said the transaction reflects the company’s continued focus on portfolio optimization and long-term value creation.
The company said the sale will create additional flexibility to redeploy capital from a mature asset into higher-value growth opportunities elsewhere across its North American footprint.
TC Energy has not identified a specific project that will receive the proceeds from the Guadalajara-Manzanillo sale.
TC Energy Will Retain Large Mexico Pipeline Network
The transaction does not mark TC Energy’s exit from Mexico.
Following closing, the company expects to continue owning and operating approximately 3,300 kilometres of natural gas pipelines in the country with installed transportation capacity of about 8.7 billion cubic feet per day.
TC Energy has operated in Mexico for more than three decades and describes itself as the largest Canadian investor in the country.
ESENTIA Expands Its Mexican Gas Infrastructure Portfolio
ESENTIA has been expanding its natural gas pipeline operations in Mexico as demand grows across industrial and power markets.
The company has separately approved a US$205 million second phase of its expansion plan that is expected to add approximately 295 MMcf/d of incremental capacity to its existing system by the first half of 2028.
The Guadalajara-Manzanillo acquisition adds an established western Mexico gas system to that broader infrastructure platform.