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BlackRock takes ownership of First Reserve's Mexican assets

Feb 8, 2017

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

Mick Bowen

Keywords: BlackRock First Reserve Mexico infrastructure

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 statement.

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.

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  • Chris Feb 10, 2017

    Mexico must no longer be the at the mercy of the U.S.
    Let them build there wall they are not a friend.

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