We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
Last year, new laws in Mexico have made it easier for foreign companies to export gas to Mexico. There’s been more than $10 billion of planned or completed pipeline investments announced by companies such as Dallas-based Energy Transfer Partners LP. Juno Beach, the Florida-based NextEra Energy Partners LP agreed to a $2.1 billion acquisition of closely-held NET Midstream, owner of seven pipelines including a 120-mile stretch that runs from Texas to the Mexican border.
It’s the surge in gas-pipeline construction that’s attracting foreign capital, expanding the market for US gas producers and meeting growing demand from Mexican manufacturers and power plants.
The pipeline construction “is similar to building a first-class highway system,” Glenn Pinkerton, a partner at Sidley Austin LLP who has worked on Latin American energy financing and infrastructure projects, said in an interview.
Just last week, Infraestructura Energetica Nova, a unit of San Diego-based Sempra Energy known as Ienova, agreed to pay $1.325 billion for a 50 percent stake in Gasoductos de Chihuahua, which operates a 73-mile pipeline between the northern states of Nuevo Leon and Tamaulipas.
Kinder Morgan Inc., the largest U.S. pipeline operator, is doubling the size of its U.S.-Mexico pipeline, while Tulsa, Oklahoma-based Oneok Partners LP said it would spend as much as $100 million on an expansion to Mexico.