Pemex divests from major Mexico pipeline
MEXICO CITY, October 9, 2017 – IEnova has acquired Mexican NOC Pemex’s 50% stake in Ductos y Energéticos del Norte, the operator of the Los Ramones Phase Two North pipeline, for USD 231 million, international media reported over the weekend.
IEnova, the local subsidiary of US-based Sempra Energy, will also be on the hook for Pemex’s USD 289 million worth of outstanding debt in the project.
In a company statement, Pemex said that the acquisition price tag would be “adjusted as of the closing date, when the rights and obligations of each partner will be acknowledged, which is common practice in this kind of transactions.”
The sale is subject to regulatory approval from Mexico’s Federal Commission for Financial Competence. The acquisition is expected to be finalised in Q4 2017.
The NOC is undergoing a review of its core business and has been seeking both buyers and partners for several assets throughout the hydrocarbons value chain. Referring to its participation in the pipeline, Pemex said, “This activity ceases to bear any strategic importance.”
“The resources from the divestment will contribute to improving the financial profile of the company, thus reducing the need for financing in the bond markets,” the company statement read. “With these kind of actions, Pemex reaffirms its commitment to consolidate its finances through focusing on strategic activities in the new context of the domestic energy industry.”
Los Ramones Phase Two North is a section of the larger Los Ramones pipeline system and connects the states of Nuevo León and San Luís Potosí. The pipeline system transports gas from the USA to central Mexico.
In September 2016, IEnova paid USD 1.14 billion to acquire Pemex’s 50% stake in Gasoductos de Chihuahua, the owner and operator of the Los Ramones Phase One pipeline.