Howard Midstream Energy Partners, LLC (HEP) has announced that its subsidiary, Nueva Era Pipeline, LLC has closed on US$353.3 million in project financing for the construction of the Nueva Era pipeline project.
The project is a 50-50 joint venture between HEP and Grupo CLISA. It will connect HEP’s existing Webb County Hub in South Texas directly to Monterrey, Nuevo León (Mexico).
Construction activities began earlier this year on the 200 mile, 36 in. and 30 in. Nueva Era pipeline, which will provide transportation service for approximately 600 ft3/d natural gas (expandable to 900 million ft3/d). The pipeline will connect producers in South Texas with end-users in northern Mexico.
The Comision Federal de Electricidad, Mexico’s state-owned electric utility, is the anchor shipper on the Nueva Era project, having committed to transport 504 million ft3/d of natural gas on the system for a 25 year term to help fuel combined-cycle power plants in Escobedo and Huinalá, near Monterrey.
The Nueva Era pipeline also offers natural gas transportation services to private shippers on an open access basis.
The project is expected to be completed and in service in 2H17.
“The closing and funding of project financing for Nueva Era marks a significant milestone for us as we continue on-schedule with construction of the project,” said HEP’s Chief Financial Officer, Scott Archer. “While the Nueva Era pipeline is the result of years of hard work and collaboration by many groups of people, our overall goal remains; to provide northern Mexico’s industrial centres with access to competitively-priced natural gas, while providing South Texas producers direct access to new and emerging markets. We are excited to keep moving forward.”
Read the article online at: https://www.worldpipelines.com/project-news/28112016/nueva-era-pipeline-project-financed/