CFE Faces Uphill Legal Battle Over Pipeline Contracts
Energy attorney Gabriel Ruiz was quoted in a Natural Gas Intelligence article about an contract dispute between Mexico's state utility and four natural gas pipeline developers. The Comisión Federal de Electricidad (CFE) disclosed that it had filed multiple arbitration requests pertaining to seven pipeline projects that have been delayed for various reasons. In addition, the CFE's president has called the contracts "unfair" and "abusive." Mr. Ruiz commented, however, that he does not foresee CFE prevailing on its claims.
"It's very difficult for CFE to allege that a clause is abusive, because CFE prepared the contract, CFE put it on offer in a tender and CFE awarded it," he explained. "What I think CFE will try to do is to say that these contracts were [awarded] under a previous administration, but for the arbitrator, it's the same CFE."