Engie, Macquarie to Partner on Mexican Natural Gas Pipeline Project

SEATTLE (Oil Monster): French energy major Engie announced that it has reached an agreement to partner with leading infrastructure investment group Macquarie Asset Management on a project aimed at expansion of Mayakan natural gas pipeline project in Mexico.

The joint statement issued by both the companies stated that the proposed pipeline project will further boost the region’s energy transition. Furthermore, it will lead to significant reduction of carbon footprint, reducing up to 7.4 million tons of carbon dioxide equivalent per year.

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The project comprises of construction of approximately 700 kilometers of natural gas pipeline in the Yucatan Peninsula , in which Macquarie plans to acquire 50% stake for a sum of around $360 million. The enterprise value of the project is estimated at around $3 billion upon completion. The asset will be run by Mayakan System, which in turn will be governed by both the companies.

The new pipeline will pass through the states of Chiapas, Tabasco, Campeche and Yucatan. It is expected to double the Yucatan Peninsula’s overall natural gas transportation capacity.

The financial advisors to Engie were BofA Securities and Sumitomo Mitsui Banking Corporation, while Rothschild provided financial advisory services to Macquarie.