Mexican natural gas pipeline sets precedent for local lawyers

Author: Michael Washburn | Published: 10 Dec 2012

The construction of a new Mexican natural gas pipeline has established a new role for project finance counsel in the region.

Scheduled to commence operations in the Mexican state of Chihuahua in July 2013, the financing, construction, and legal preparations for the $472 million pipeline began on December 11 2011.

But before the financing could complete, local lawyers on the deal had to first secure a right of way in a Mexican region with many overlapping and conflicting territorial claims.

Galicia Abogados’ Francisco Fernández Cueto said the project marked the first time in which such rights of way were managed by the service provider, and were the responsibility of the project itself, not the bidding entity, the country’s Federal Electric Commission....