Nueva Era Pipeline LLC closed on $353.3 million in project financing for the construction of the Nueva Era Pipeline project, which will transport natural gas from parent Howard Midstream Energy Partners' (HEP) Webb County hub in South Texas directly to Monterrey, Nuevo Leon, Mexico.
The Nueva Era Pipeline is a 50:50 joint venture (JV) between HEP and Mexico’s Grupo CLISA, HEP said Nov. 16.
Construction began earlier in 2016 on the roughly-200-mile pipeline, which will transport about 600 million cubic feet per day (MMcf/d) of natural gas to end users in northern Mexico. The capacity is expandable to 900 MMcf/d.
Mexico’s Comision Federal de Electricidad electric utility will transport 504 MMcf/d for 25 years as the anchor shipper. This will help fuel combined-cycle power plants in Escobedo and Huinala, near Monterrey.
The pipeline is expected to be completed and in service in the second half of 2017.
The banks that provided financing for the project include MUFG, Santander, Societe Generale, Sumitomo Mitsui Banking Corp. and CaixaBank.
HEP received legal advice from Latham & Waktins LLP, Creel, Garcia-Cuellar, Aiza y Enriquez and Canales Davila SC. Milbank, Tweed, Hadley & McCloy LLP and Galicia Abogados were the principal legal advisers for the lending group.
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