Financial close for Samalayuca - Sásabe gas pipeline in Mexico

BBVA, The Bank of Tokyo-Mitsubishi UFJ, CaixaBank and Mizuho Bank have provided a loan for the construction of a natural gas pipeline between Samalayuca, Chihuahua and Sásabe, Sonora (Mexico). Milbank, Tweed, Hadley & McCloy LLP has advised the lenders on this transaction.

In mid September 2015 we reported that the Comisión Federal de Electricidad (CFE), awarded the Samalayuca – Sasabe pipeline project to Carso Electric and Promotora de Desarrollo.

The 36-inch natural gas pipeline is scheduled to run across northern Mexico for approximately 380 miles from Samalayuca, Chihuahua to Sásabe, Sonora. Its carrying capacity of 472 million cubic feet per day will supply Mexico’s state-owned electricity provider CFE with natural gas.

Mr. Bartfeld, head of Milbank’s Global Project, Energy and Infrastructure Finance Group, said:

“As Mexico continues to develop its natural gas infrastructure, Milbank is pleased to again play a key role in advising major international financial institutions helping Mexico provide for the energy needs of the country. We are pleased to add this latest transaction designed to supply natural gas to the CFE to our list of successful Mexican financings.”

Mr. Michalchuk added:

“Our Global Project, Energy and Infrastructure Finance team has played a pivotal role in a number of key energy financings in Mexico, including pipeline infrastructure that will deliver US natural gas into the country from key hubs in Texas. This transaction further showcases our strengths in large-scale energy financings in Latin America.”