Mexico Pacific Limited (MPL) announced that a consortium led by Avaio Capital has acquired control of privately held Mexico Pacific, which is developing a facility to export U.S. gas from Mexico's west coast.
As part of the deal, investors including Avaio and funds managed by Tortoise Capital Advisors will invest new capital in the business to fund MPL’s continued development.
MPL is developing a 12 mtpa LNG export facility on the Pacific Coast of Mexico, to be built in 3x4 mtpa phases, just south of the U.S. border leveraging abundant U.S. shale gas and existing pipeline infrastructure to deliver some of North America’s cheapest landed LNG into Asia.
President Josh Loftus stated, “We are pleased that both new and existing investors recognise the major progress our project has made in 2019. MPL is now fully permitted for FID with non-binding offtake agreements in place for the first phase. Focus is now on finalising FEED, securing binding offtake and scaling up key team members prior to taking FID in Q4 2020.”
Mark McComiskey, a partner at Avaio said, “Demand for a Pacific Coast of Mexico export outlet for US shale gas is proven, and we are excited to acquire control of MPL, the only other LNG project on the west coast of North America that can serve as an outlet for US shale gas that has all its major permits in place. This transaction serves as an exciting inflection point for MPL. We look forward to completing the final engineering and taking FID before the end of 2020.”
“In our view, MPL is highly attractive due to its advantaged location for serving the Asian LNG market, its advanced stage of development and the quality of its current and incoming management,” said Stephen Pang, Tortoise managing director and portfolio manager. “We believe that LNG is a key driver for and will be a main beneficiary of the energy transition story and support the goal to reduce global carbon emissions. Tortoise looks forward to the partnership with Avaio Capital and the management team, whose development expertise continues to successfully advance the project.”