TC Energy Corporation (TSX, NYSE: TRP) announced on September 21, 2026 that it has agreed to sell Energía Occidente de México (EOM), the entity owning the Guadalajara-Manzanillo Pipeline in Mexico, to affiliates of ESENTIA Energy Development, S.A.B. de C.V. for approximately $560 million (US$400 million). The 313-kilometre pipeline transports up to 500 MMcf/d of natural gas across the Mexican states of Colima and Jalisco. The divestiture is part of TC Energy's broader portfolio optimisation strategy, with proceeds earmarked for redeployment into growth opportunities across its North American network. Investors may be watching how the company deploys these capital proceeds.

Key Points

  • TC Energy Corporation (TSX, NYSE: TRP) is a Calgary-based North American energy infrastructure leader
  • TC Energy has agreed to sell the Guadalajara-Manzanillo Pipeline to ESENTIA affiliates for approximately $560 million (US$400 million)
  • Transaction is expected to close in the first half of 2027, subject to regulatory approvals and customary closing conditions
  • Investors should watch how TC Energy allocates proceeds toward accretive growth opportunities across its North American footprint

Pipeline Sale Terms and Strategic Rationale

TC Energy has entered into a definitive agreement to divest Energía Occidente de México to ESENTIA affiliates for a gross purchase price of approximately $560 million (US$400 million). The Guadalajara-Manzanillo Pipeline spans 313 kilometres and has a transportation capacity of up to 500 MMcf/d of natural gas, serving power plants and industrial customers by connecting imported LNG supply near Manzanillo with continental gas supply near Guadalajara. The company characterised the transaction as consistent with its portfolio optimisation focus and disciplined capital allocation strategy, aiming to redeploy proceeds from a mature asset toward higher-value growth initiatives.

TC Energy's Continued Presence in Mexico After the Sale

The announcement makes clear that TC Energy is not exiting Mexico entirely. Following the anticipated closing, TC Energy will continue to own and operate approximately 3,300 kilometres of natural gas pipeline in the country, with 8.7 Bcf/d of installed transportation capacity. President and CEO François Poirier noted the company's more than 30-year history in Mexico and described TC Energy as the largest Canadian investor in the country. The release states TC Energy and ESENTIA will collaborate to support a safe and orderly transition of operations for the Guadalajara-Manzanillo system.

Closing Timeline and Regulatory Requirements

The transaction is anticipated to close in the first half of 2027, subject to customary closing conditions, regulatory approvals, and third-party consents. TC Energy's forward-looking disclosures flag risks including timely receipt of regulatory approvals, satisfaction of closing conditions, and fluctuations in foreign exchange rates. The company cautions that forward-looking statements reflect assumptions as of the announcement date and are not guarantees of future performance. The immediate share price impact was not clear from available public information.