ESENTIA to acquire Guadalajara-Manzanillo pipeline for US$400 million

ESENTIA Energy Development has agreed to acquire 100% of the equity interests in Energía Occidente de México (EOM) for US$400 million. The deal involves the Guadalajara-Manzanillo natural gas pipeline system, a 313-kilometer network connecting Jalisco to Colima.

By integrating this system with its existing Villa de Reyes-Aguascalientes-Guadalajara (VAG) pipeline, ESENTIA aims to extend its network to the Port of Manzanillo on Mexico’s Pacific coast. The company stated that this acquisition would make it the only private entity with an integrated pipeline system connecting the Permian Basin in Texas to the Mexican Pacific coast.

CEO Daniel Bustos noted that the acquisition aligns with the company’s strategy to build a cohesive cross-border transportation system. The expanded infrastructure is expected to serve power generation, industrial consumers, and potential liquefied natural gas (LNG) projects while providing operational synergies and cost savings.