Sempra-owned IEnova buys Pemex’s share in pipeline JV in Mexico for $1.32bn

US based Sempra Energy’s Mexican subsidiary Infraestructura Energética Nova (IEnova) has agreed to acquire 50% stake from Petróleos Mexicanos (PEMEX) in the Gasoductos de Chihuahua joint venture (JV) project for $1.325bn.

As per the deal, IEnova will also assume $170m in net debt.

IEnova will own 100% of equity in Gasoductos de Chihuahua following the transaction and will finance the deal through debt and equity.

The JV owns three natural gas pipelines, an ethane pipeline, a liquid petroleum gas (LPG) pipeline and a LPG storage terminal, all of which are under long-term supply contracts.

Besides the acquisition, the two firms will maintain a joint venture for the Los Ramones Norte pipeline project, which is a major project enabling natural gas transmission from Texas to central Mexico.

Sempra Energy expects to close the transaction, which awaits approval from the IEnova shareholders, within 120 days. It is subject to satisfactory completion of a Mexican anti-trust review and other customary closing conditions.

Sempra Energy president Mark A. Snell said: "This acquisition creates incremental value for IEnova and Sempra Energy shareholders by expanding our asset base and operating capabilities in Mexico.

"It provides opportunities to leverage our resources and grow in the marketplace."

The deal is in line with Pemex’s strategy to boost its operating and financial efficiency.

The sale is expected to allow the firm for investing in "strategic projects that are more profitable, reducing the need to take on debt".

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Image: Sempra Corporate headquarters in San Diego. Photo: courtesy of Nehrams2020 / Wikipedia.