Pemex And First Reserve Announce Substantial US$1 Billion Cooperation Agreement
- Partnership to Develop Critical Energy Infrastructure Projects in Mexico
GREENWICH, Connecticut, HOUSTON, LONDON and MEXICO CITY, April 7, 2015 /PRNewswire/ -- Petroleos Mexicanos ("Pemex") and First Reserve, the largest global private equity and infrastructure investment firm exclusively focused on energy, announced a US$1 billion agreement to mutually invest in energy infrastructure for Mexico.
The two organizations recently announced the first of such investments – the Los Ramones pipelines – which are expected to consist of 744 kilometers of natural gas pipelines, creating an essential energy connection for Mexico. Construction of the projects has already begun, with full commercial operations expected in mid-2016. Additional projects the two companies are pursuing include other large-scale essential infrastructure opportunities across the energy value chain.
The joint venture represents a significant milestone for both parties towards continuing to invest in energy infrastructure projects in Mexico and a statement of foreign confidence in the Mexican energy industry. With this landmark partnership established, Pemex and First Reserve plan to invest capital in energy infrastructure projects throughout Mexico, combining the financing, structuring and industrial and operational experience needed to bring these critical projects to fruition. These investments are expected to enhance the country's energy profile, lowering electricity prices and supporting Mexican industry.
William Macaulay, Chairman and Co-CEO of First Reserve, commented, "As global investors, First Reserve is excited to be expanding our existing portfolio in Mexico, where we have believed there to be attractive investment opportunities for some time. Through formal collaboration with Pemex, we feel we have gained substantial access to a region with strong supportive macro dynamics alongside a motivated and accomplished partner. First Reserve looks forward to mutually exploring multiple investment opportunities throughout the country's vast energy value chain on behalf of our investors and the country of Mexico."
About First Reserve
First Reserve is the largest global private equity and infrastructure investment firm exclusively focused on energy. With over 30 years of industry insight, investment expertise and operational excellence, the Firm has cultivated an enduring network of global relationships and raised more than USD $30 billion of aggregate capital since inception. Putting these to work, First Reserve has completed more than 550 transactions (including platform investments and add-on acquisitions) on six continents. Its portfolio companies span the energy spectrum from upstream oil and gas to midstream and downstream, including resources, equipment and services and infrastructure. Visit us at www.firstreserve.com for more information.
For First Reserve media inquiries, please contact:
Caroline Harris-Gibson
Prosek Partners
Tel: +1-212-279-3115 ext. 222
E-mail: cgibson@prosek.com
Meredith Mitchell
Prosek Partners
Tel: +1-212-279-3115 ext. 268
E-mail: mmitchell@prosek.com
Share this article