TC Energy agrees to sell Guadalajara-Manzanillo pipeline business for $560M

• TC Energy (NYSE:TRP) agreed to sell Energía Occidente de México, owner of the Guadalajara-Manzanillo Pipeline, to ESENTIA affiliates.
• The transaction value is approximately $560 million, generating cash proceeds for TC Energy.
• TC Energy plans to reinvest proceeds into growth opportunities across North America.

TC Energy (NYSE:TRP) announced an agreement to sell Energía Occidente de México, the owner of the Guadalajara-Manzanillo Pipeline, to affiliates of ESENTIA for approximately $560 million.

The transaction includes a gross purchase price of $560 million, equivalent to approximately US$400 million, with TC Energy expecting cash proceeds of a similar amount.

The Guadalajara-Manzanillo Pipeline is a 313-kilometre natural gas pipeline capable of transporting up to 500 million cubic feet per day (MMcf/d) between Manzanillo and Guadalajara.

The pipeline supports electricity generation facilities and industrial customers in Mexico’s Colima and Jalisco regions.

The transaction is expected to close in the first half of 2027, subject to customary closing conditions, regulatory approvals and required third-party consents.

TC Energy said proceeds from the sale will be redeployed into growth opportunities across North America.

Following completion of the transaction, TC Energy will continue operating a significant Mexican natural gas infrastructure network consisting of approximately 3,300 kilometres of pipelines with total capacity of 8.7 billion cubic feet per day.