(IEnova, 5.Aug.2019) — Infraestructura Energética Nova, S.A.B. de C.V., (IEnova), reports that, within the framework of the Negotiation Rounds convened by the Federal Government related to the Natural Gas Pipeline Transportation Services Agreements entered into by the Federal Electricity Commission (“CFE”) and some private companies, it executed a Term Suspension Agreement (the “Suspension Agreement”), with respect to the Natural Gas Transportation Services Agreement for the Guaymas – El Oro gas pipeline, entered into between CFE and one of IEnova’s subsidiaries on November 1, 2012 (the “Agreement”), in which operation was disrupted by actions of a third-party since August 22, 2017.
In accordance with the Agreement, if an event prevents the transportation company from providing the natural gas transportation services to the CFE for a period longer than two consecutive years, the Agreement shall be deemed to have terminated.
To avoid termination of the Agreement, CFE and IEnova executed the Suspension Agreement so that within a four month period, the parties take all necessary and available actions to resume the operation of the pipeline. The execution of the Suspension Agreement does not imply any waiver of the rights of the parties under the Agreement.
The execution of the Suspension Agreement reflects IEnova’s commitment to maintain a dialogue with the Federal Government and with the CFE in order to reach a satisfactory agreement between the parties and continue to provide natural gas transportation services in the Guaymas – El Oro pipeline.
***