Mexican President Touts $4.5 Billion Savings in New Pipeline Deal

Mexico said on Tuesday it had struck a deal with a group of companies to renegotiate the terms of natural gas pipeline contracts signed under the previous administration that will eventually save the government $4.5 billion.

The deal announced by President Andres Manuel Lopez Obrador and the head of the Federal Electricity Commission (CFE), a state-run power utility, at a news conference will reduce what Mexico pays the firms to transport natural gas, the government said.

Lopez Obrador said Tuesday that companies from the U.S., Canada and Mexico agreed to restructure fees. He said the companies accepted about a 30% lower profit margin.

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