NET Midstream wins US$ 665 million pipeline funding

NET Midstream has announced that its affiliate, NET Mexico Pipeline Partners, LLC, has closed a US$ 665 million project financing with a syndicate of lenders, led by the Mitsubishi UFJ Financial Group (MUFG).

MUFG is joined by seven Joint Arrangers, including ING Capital, Credit Agricole, Natixis, Royal Bank of Canada, Nord/LB, BBVA, and Santander.

NET Mexico pipeline

NET Mexico will build a 120 mile 42 in. and 48 in. dia. natural gas pipeline system to the international boundary, with approximately 120 000 horsepower of compression. NET Mexico will interconnect on the Mexican side of the border with Phase One of the Los Ramones Pipeline, which is being developed by an affiliate of Gasoductos de Chihuahhua S. de RL de CV.

The pipeline will transport gas from nine interconnects at the Agua Dulce hub in Nueces Country, Texas to a point near Rio Grande City, Texas in Starr County and is scheduled to be placed into service in December 2014.

The pipeline is anchored by a long-term firm gas transportation agreement, for up to 2.1 billion m³/day, with MGI Supply Ltd., an indirect wholly owned subsidiary of Pemex gas y Petroquimica Basica (PEMEX GAS), the Mexican state-owned gas company.

"We continue to make great strides towards completing the development of NT Mexico," said Drew Tingleaf, Chief Financial Officer of NET. “This financing received strong interest form the market, and we are pleased to have MUFG and other Joining Lead Arrangers as financing partners.”

Construction

The company announced in November that NET has received a Presidential Permit from FERC, which grants authorisation for certain border crossing facilities at the international boundary between the US and Mexico. Procurement of all major pipeline and compression equipment has been completed. The Company has selected Willbros Group, Inc. to construct the pipeline. Construction will begin in February 2014 with mechanical completion in October.

In addition to NET Mexico, the Company operates three pipelines in the Eagle Ford Shale serving producers and power generators. The Company also owns Monument Pipeline, which serves producers and end-users in the Houston area, and South Shore Pipeline, which provides natural gas service to the Corpus Christi area.

Adapted from press release by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/10122013/net_midstream_win_-us_665_million_pipeline_funding/