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Mexico sues former CFE directors for contract with gas supply from Texas – El Sol de México

Mexico’s state-owned power company filed a breach-of-contract lawsuit in a Texas court Wednesday against former executives of a U.S. subsidiary, alleging they improperly awarded a lucrative gas-supply contract.

The lawsuit, filed by a unit of the Federal Electricity Commission (CFE), comes amid efforts by Mexican President Andrés Manuel López Obrador to reconsider agreements in the energy sector that, in his opinion, harm the state generator. and the oil company Pemex.

Mexico has disputes with US companies involving some 30 billion dollars.

Guillermo Turrent and Javier Gutiérrez, two senior CFE Internacional executives, awarded contracts to Texas-based WhiteWater Midstream LLC for a gas pipeline and gas supply, costing the company hundreds of millions of dollars in damages, according to a lawsuit filed in Harris County District Court in Houston.

An attorney for the pair was not immediately available for comment. A WhiteWater Midstream spokesman said he had not seen the lawsuit and had no immediate comment.

CFE International’s contracts required the company to pay WhiteWater Midstream “huge sums for unnecessary and overpriced natural gas and unnecessary pipeline costs,” according to the lawsuit.

One contract provides 1.5 million cubic feet a day of natural gas, some of which is not needed and is “routinely resold at huge losses” to the Mexican company. A long-term pipeline-related contract was unnecessary and designed to help WhiteWater obtain outside financing, according to the suit.

Both former officials misled the CFE board of directors by not disclosing prior business relationships with WhiteWater executives, the CFE alleges.

The lawsuit seeks compensation of at least $1 million in damages.

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