BlackRock Infrastructure Investment Group, within BlackRock Alternative Investors, a division of BlackRock, Inc., an American multinational investment management corporation, and First Reserve, the largest global private equity investment firm exclusively focused on energy, have agreed to acquire about 45 percent stake in two Mexican natural gas pipelines, owned by state-owned oil company Petróleos Mexicanos (Pemex).
The two investors have agreed to invest an estimated $900 million to fund the construction of the pipeline Los Ramones II.
The terms of the deal commit BlackRock to invest $4.6 billion and First Reserve to invest $30 million over the next 25 years. In return they will receive a combined 45 percent control of the project.
The first part of this project, the Ramones I, ranges from Eagle Ford in Texas to Los Ramones, Nuevo León and phase II will reach Guanajuato to supply the central and western parts of the country.
This agreement is the first major midstream agreement sponsored by Pemex with foreign capital since the approval of México’s Constitutional Energy Reform in 2013.
Pemex CEO Emilio Lozoya said with this investment by two reputable financial firms, the Energy Reform becomes a step closer to materializing into an economic driver for the country.
(from Eagle Ford Shale)