Engie to partner with Macquarie in Mexican pipeline project
LONDON, July 11 (Reuters) - French energy company Engie has agreed to partner with Australian infrastructure investor Macquarie Asset Management to expand the Mayakan natural gas pipeline in Mexico, the two companies said in a statement on Thursday.
The project aims to accelerate the energy transition of the region and will reduce carbon footprint by up to 7.4 million tons of CO2 equivalent per year, the companies said.
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The partnership involves Macquarie acquiring a 50% stake for $360 million in the construction of a 700-kilometer natural gas pipeline in the Yucatán Peninsula, according to a source with knowledge of the deal.
The enterprise value of the project will be up to $3 billion at completion and the two companies will share the governance of the company running the asset, known as Mayakan System, the person said.
The new pipeline will double the natural gas transportation capacity for the Yucatán Peninsula and will pass through the states of Chiapas, Tabasco, Campeche and Yucatán.
Mexican state power utility CFE in November 2022 signed an agreement with Engie to expand the Mayakan gas pipeline in the Yucatan Peninsula.
BofA Securities and Sumitomo Mitsui Banking Corporation acted as financial advisers to Engie, while Rothschild advised Macquarie.
(Reporting by Andres Gonzalez. Additional reporting by Forrest Crellin. Editing by Anousha Sakoui and Jane Merriman)