TC Energy to Sell 500 MMcf/d Mexican Pipeline to Esentia

TC Energy agreed to sell Energía Occidente de México, the entity that owns the Guadalajara-Manzanillo Pipeline, to affiliates of Esentia Energy Development. The pipeline can transport up to 500 million cubic feet of natural gas per day.

The system connects imported LNG supply near Manzanillo and continental gas supply near Guadalajara with power plants and industrial customers in the Mexican states of Colima and Jalisco.

"This transaction reflects our continued focus on portfolio optimization and long-term value creation," said François Poirier, President and Chief Executive Officer of TC Energy.

Esentia's board approved the transaction on September 4, 2026. The deal is expected to close in the first half of 2027, subject to customary closing conditions, regulatory approvals and consents.

Esentia expects to fund the purchase through available liquidity, existing credit lines or a combination of both, and does not expect the transaction to increase its gross debt. As a result, Esentia would become the only private company with an integrated natural gas pipeline system connecting the Permian Basin in Texas with Mexico's Pacific coast.

TC Energy and Esentia will work together to support a safe and orderly transition of pipeline operations. After closing, TC Energy will continue to own and operate its broader Mexican natural gas pipeline network.