Los Ramones Gas Pipeline Phase II Norte

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The Los Ramones Gás Pipeline Phase II Norte project envisages the construction of a 441-km natural gás pipeline starting in Los Ramones (state of Nuevo Leon) and finishing in the state of San Luis Potosí. In March 2014, the project was awarded by the Mexican state-owned company Pemex to TAG Norte S.A. de C.V., a partnership of Gasoducto de Chihuahua (50/50 partnership of Sempra's subsidiary IENOVA and Pemex), PMI Holdings and TAG Pipelines (both companies wholly-owned by Pemex). The contract lenght was established as 25 years of commercial operations. The investment in the project was estimated at US$ 1654 million. Financial closure wsa achieved in March 2015. Financing comprised a US$ 573.6 million 12-year term-loan, a US$ 701 million 20-year term loan and a US$ million US$ 244.2 million (Pesos 3.7 billion) VAT loan (MLAs for the short tranche were Santander, BBVA and HSBC; MLAs for the long tranche were Banobras, Nafin and Bancomext). The EPC contract was granted to AOT Pipelines, a partnership of the Brazilian company Odebrecht, the Mexican company Arendal and the Argentine company Techint. Construction works started in September 2014, and commercial operations were expected to commence in December 2015. In September 2015, PMI's 45% stake in the project company was sold to Blackrock and First Reserve for US$ 900 million.