Mexico President Andrés Manuel López Obrador denied Thursday that Spain’s Iberdrola SA is pulling out of its planned $1.2 billion natural gas-fired combined-cycle plant in the port city of Tuxpan.

“There is no official information. It’s a journalistic story,” López Obrador said during his daily press conference. 

On Wednesday, Tuxpan Mayor Juan Antonio Aguilar, told local press he had received word that the company was canceling the project because it had been unable to secure a natural gas contract with state utility Comisión Federal de Electricidad (CFE). Reportedly, the project would be carried out by CFE instead. 

“I received a letter from the directors of the company saying they had around 26 thermoelectric plants in the country, and they’d like to keep...