By KELIN DILLON
Mexico’s state-owned Federal Electricity Commission (CFE) is currently facing arbitration from the U.S.-based company Whitewater Midstream for a non-payment of gas acquired during February’s pipeline freeze and subsequent gas shortage in Texas.
Estimates say that the CFE could owe as much as $100 million to Whitewater Midstream, which is one of the main suppliers of natural gas to Mexico. Despite February’s freeze forcing prices to hike from $2 to $400 per unit, the company claims the CFE has no grounds for its non-payments arguments.
The CFE’s International Director Miguel Reyes originally said the month’s increased rates would not be passed on to affect customer’s costs, though in actuality they increased between 3 and 3.8 percent.
This is the CFE’s second arbitration over the Texas pipeline freeze, with global investment bank Goldman Sachs suing the state-owned company for $400 million back in May thanks to defaulting on payments.