(MENAFN– The Rio Times) Mexico is on the verge of major economic change due to the Southeast Gateway Pipeline project. This $4.5 billion investment aims to improve energy access in the Yucatan Peninsula, potentially stimulating significant economic growth in the area.
President Claudia Sheinbaum took over the project from her predecessor, Andres Manuel López Obrador. The 715-kilometer underwater pipeline will transport natural gas from Texas to the Yucatan Peninsula, providing reliable and affordable energy to a region where many live in poverty.
Led by Canadian company TC Energy and Mexico’s state utility, the pipeline will be completed next year, delivering up to 1.3 billion cubic feet of natural gas daily. This energy boost could raise Yucatan’s GDP by 3% in its early years and create thousands of jobs, attracting energy-intensive industries.
As Yucatan’s energy demand grows at 7% annually, the pipeline could transform the region into a business hub. Levy Abraham Macari, from the Canaco business chamber in Mérida, notes it could draw significant investment to manufacturing.
The pipeline also fits into Mexico’s larger economic strategy, supporting a proposed railway corridor aimed at enhancing trade routes, similar to those of the Panama Canal. Mexico relies heavily on gas from Texas, with about 60% of its energy generation dependent on it.
This project might stabilize energy prices and supply between Mexico and the U.S. While there are environmental concerns, it could lower carbon emissions by enabling a transition from oil to natural gas, potentially cutting emissions by 27% and saving nearly $3 billion in fuel costs over 30 years.
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