'Force Majeure' Declared on Damaged Mexican Gas Pipeline

Mexican state power utility CFE has declared 'force majeure' on imports into the Manzanillo liquefied natural gas (LNG) terminal after Hurricane Manuel damaged a pipeline, reports Reuters, citing a source with knowledge of the incident.

The line in question, the Guadalajara Pipeline, is owned by pipeline company TransCanada Corp and transports natural gas in a gaseous state to the terminal at Manzanillo.

The damaged section of the TransCanada pipeline is located near the town of El Bordo, about 125 km (80 miles) inland from the port of Manzanillo, in Colima state.

The Manzanillo LNG terminal, with a capacity of 3.8 million tons a year, started operations last year, and is a owned jointly by Samsung C&T, Mitsui Trading, and Korea Gas Corp, the world's biggest LNG buyer.

Source: Reuters