BlackRock takes ownership of First Reserve's Mexican assets
A gasoline plant, natural gas pipeline and wind farm in Mexico are part of a larger deal where the US asset manager acquires the private equity firm's energy infrastructure portfolio
BlackRock will assume ownership of First Reserve's
three energy assets in Mexico as part of an agreement to
acquire the US private equity firm's energy infrastructure
portfolio for an undisclosed amount.
First Reserve owns a low-sulfur gasoline
processing plant in Mexico, along with Los Ramones II natural
gas pipeline and La Bufa wind farm. The firm has roughly $3.7bn
in two energy investment funds, BlackRock said in a
First Reserve negotiated a
sale-leaseback with Mexico's state-owned oil company Pemex
for the gasoline plant last year. Pemex pays rent to operate
the plant under a 20-year contract.
The private equity firm is partners with Mexico
Power Group (MPG) on
La Bufa wind farm in Zacatecas, backed by a 20-year power
purchase agreement with Volkswagen.
BlackRock and First Reserve agreed in March 2015
to buy a 45% stake in
Los Ramones II for $900m. The 744km pipeline between
northern Mexico and Guanajuato has a 25-year take-or-pay
agreement with Pemex.