Mexico’s state power company Comisión Federal de Electricidad (CFE) and Esentia Energy Systems have signed a memorandum of understanding (MOU) to jointly invest roughly $300 million to optimize and expand the country’s natural gas pipeline network.

CFE, through subsidiaries CFE International LLC and CFEnergía, is Mexico’s largest importer and marketer of U.S. natural gas, which meets about 70% of Mexico’s demand. 

Esentia, formerly known as Fermaca, operates the Waha-to-Guadalajara or “Wahalajara” system,which transports gas from the Permian Basin to the industrial hub of Guadalajara. Stretching more than 1,200 miles, Wahalajara is the largest private interconnected gas system in Mexico. CFEnergía is the primary holder of firm transport capacity on...