Nueva Era Natural Gas Pipeline

active

Nueva Era Pipeline project envisaged the designing, construction and operation of a 321-km natural gas pipeline starting in South Texas directly to Monterrey, Nuevo León (Mexico). The pipeline was set to have a capacity of 600 million cubic feet per day. In August 2015, the project was awarded by the Mexico's regulatory agency CFE to Nueva Era Pipeline LLC, 50-50 joint venture between American company Howard Midstream Energy Partners LLC (HEP) and Mexico-based energy and services firm Grupo CLISA. The contract lenght was established as 25 years of commercial operations. The sponsors established the special purpose company Midstream de Mexico, S. de R.L. de C.V. to lead the project in Mexico. The sponsor established a take-or-pay agreement with CFE. The investment in the project was estimated at US$ 800 million. Financial closure was achieved in November 2016. The US$ 353.3 million financing package was provided by international banks (MUFG, Santander, Societe Generale, Sumitomo Mitsui Banking Corporation, and CaixaBank). Construction works started in 2016, and commercial operations were expected to commence in the second half of 2017. HEP will manage all project construction and operations upon completion.