Mexico’s state power utility Comisión Federal de Electricidad (CFE) on Monday affirmed its stance that renegotiating five natural gas pipeline contracts would result in significant long-term savings for the firm.

Mexico trade

Spokesman Luis Bravo Navarro issued a statement responding to a widely publicized report by congressional auditor Auditoría Superior de la Federación (ASF).

The ASF report breaks down the forecasted financial impact of the amended contracts on a net present value (NPV) basis.

The ASF findings confirmed that extending the contracts from 25 years to 35 years, along with freezing and levelizing the rates paid by CFE to the pipeline owners, would result in significant savings for CFE, Bravo said.

The report found that the renegotiation would result in savings of...