Pipeline dispute hits confidence in Mexico

A dispute in Mexico over gas pipeline contracts is threatening to undermine fragile business confidence at a time when it is already shaken following the resignation of the country’s finance minister.

The dispute is about whether CFE, the state-owned electricity company, will honor seven multibillion-dollar pipeline contracts with US, Canadian and Mexican companies agreed before Andrés Manuel López Obrador took office as president and which the government says are exorbitant and unfair, the Financial Times reports.