Mexico's CFE says to work with Engie to expand pipeline in Yucatan Peninsula

The logo of Mexico's state-run electric utility known as the Federal Electricity Commission (CFE), is pictured at its building office in Monterrey, Mexico February 9, 2021. REUTERS/Daniel Becerril/File Photo

MEXICO CITY, Nov 28 (Reuters) - Mexican state power utility CFE has signed an agreement with French energy company Engie to develop terms and requirements to expand the Mayakan gas pipeline in the Yucatan Peninsula, CFE said in a statement Monday.

Representatives for the two parties met on Nov. 23, CFE said.

The Mayakan pipeline spans some 800 km (497 mi) and counts CFE among its key clients, according to Engie's website.

The pipeline can currently supply up to six CFE plants, the state utility said, however as two new plants come online and gas demand grows in the region, "the need to develop additional gas transportation infrastructure becomes imperative."

Engie Mexico did not immediately respond to a request for comment.

Reporting by Mexico City Newsroom; Editing by Brendan O'Boyle

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