TC Energy has agreed to sell Energía Occidente de México, which owns the approximately 313-kilometre Guadalajara-Manzanillo natural gas pipeline system, to affiliates of ESENTIA Energy Development for a gross purchase price of US$400 million, or approximately $560 million. The system runs from the Guadalajara area in Jalisco to Manzanillo, Colima, connects with the LNG Manzanillo regasification terminal, and links with ESENTIA’s existing Villa de Reyes-Aguascalientes-Guadalajara system and Mexico’s SISTRANGAS network. ESENTIA said the acquisition would extend its integrated pipeline network to Mexico’s Pacific coast and make it the only private company with an integrated natural gas pipeline system connecting Texas’ Permian Basin with the Mexican Pacific coast. Closing is anticipated in the first half of 2027 and remains subject to customary conditions, regulatory approvals and consents. ESENTIA expects to fund the transaction with available liquidity and/or existing credit facilities without increasing gross indebtedness, while TC Energy plans to redeploy proceeds from the mature asset toward growth opportunities across its North American operations.