Under the agreement, Enagás and Elecnor will each hold 50 per cent of the company owning the gas pipeline and will jointly carry out all engineering, construction, and operating functions.
Total investment in construction, including finance costs, is estimated at $US270 million. The fund for the internationalisation of Spanish companies – ‘Fondo para la Internacionalización de la Empresa’ – which is managed by the Secretary of State for Commerce of Spain’s Ministry of Economy and Competition, has granted $US50 million of finance for the project. In addition, a loan is being negotiated with Mexican public bank Banobras and private bank Banamex-Citigroup.
The 160 km pipeline will carry natural gas from the Mexican state of Tlaxcala to Morelos in central Mexico. It will provide natural gas transport services to Mexico’s Federal Electricity Commission under a 25-year service agreement.
The pipeline is expected to be commissioned in mid-2013.
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