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Canada’s TC Energy TRP-T has agreed with Mexico to build a $5-billion gas pipeline in the Mexican Gulf Coast state of Veracruz, senior foreign ministry official Roberto Velasco said on Friday.

Velasco was speaking at an event hosted by the Canadian embassy in Mexico City. The pipeline will connect the ports of Tuxpan and Coatzacoalcos, a separate source familiar with the matter said, adding the agreement for the pipeline was between TC Energy and Mexico’s state-owned power company CFE.

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