Sempra Energy's Mexican subsidiary, Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) has agreed to purchase Pemex's 50 % equity interest in the Gasoductos de Chihuahua joint venture.
Under the agreement IEnova will pay Pemex US$1.325 billion, plus the assumption of approximately US$170 million in net debt.
The acquired joint-venture assets are under long-term contracts and include three natural gas pipelines, an ethane pipeline, a liquid petroleum gas (LPG) pipeline and a LPG storage terminal.
As a result of this transaction, IEnova will own 100 % of the equity capital in Gasoductos de Chihuahua.
In addition, under the terms of the agreement, IEnova and Pemex shall maintain a joint venture for the Los Ramones Norte pipeline project. This partnership will allow IEnova and Pemex to continue building on their successful history of joint development of energy infrastructure projects in Mexico.
Mark A. Snell, president of Sempra Energy, stated:
"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 transaction is expected to close within 120 days, after approval by IEnova shareholders and the satisfactory completion of a Mexican anti-trust review and other customary closing conditions.
IEnova develops, builds and operates energy infrastructure in Mexico. As of 2014, the company has invested more than US$3.5 billion in operating assets and projects under construction in Mexico, making it one of the largest energy companies in the country. IEnova is the first energy infrastructure company to be listed on the Mexican Stock Exchange.