HOUSTON, Dec. 9, 2013/PRNewswire/ -- NET Midstream ("NET" or the "Company") today announced that its affiliate, NET Mexico Pipeline Partners, LLC. ("NET Mexico"), has closed a $665 MM Project Financing with a syndicate of lenders, led by the Mitsubishi UFJ Financial Group ("MUFG"). The Project Financing was approximately 2x oversubscribed and received commitments from 100% of invited financial participants.
MUFG is joined by seven Joint Lead Arrangers, including ING Capital, Credit Agricole, Natixis, Royal Bank of Canada, Nord/LB, BBVA, and Santander.
NET Mexico will build a 120-mile, 42" and 48" diameter natural gas pipeline system to the international boundary, with approximately 120,000 horsepower of compression. NET Mexico will interconnect on the Mexican side of the border with Phase One of the Los Ramones Pipeline, which is being developed by an affiliate of Gasoductos de Chihuahua S. de R.L. de C.V. The pipeline will transport gas from nine interconnects at the Agua Dulce Hub in Nueces County, Texas to a point near Rio Grande City, Texas in Starr County and is scheduled to be placed into service in December 2014.
The pipeline is anchored by a long term firm gas transportation agreement, for up to 2.1 Bcf/d, with MGI Supply Ltd., an indirect wholly owned subsidiary of Pemex Gas y Petroquimica Basica ("PEMEX Gas"), the Mexican state-owned gas company.
"We continue to make great strides towards completing the development of NET Mexico," said Drew Tingleaf, Chief Financial Officer of NET. "This financing received strong interest from the market, and we are pleased to have MUFG and the other Joint Lead Arrangers as financing partners."
The Company announced in November that NET Mexico has received a Presidential Permit from FERC, which grants authorization for certain border crossing facilities at the international boundary between the United States and Mexico. Procurement of all major pipeline and compression equipment has been completed. The Company has selected Willbros Group, Inc. to construct the pipeline. Construction will begin in February 2014 with mechanical completion in October.
In addition to NET Mexico, the Company operates three pipelines in the Eagle Ford Shale serving producers and power generators. The Company also owns Monument Pipeline, which serves producers and end-users in the Houston area, and South Shore Pipeline, which provides natural gas service to the Corpus Christi area.
About NET Midstream NET Midstream is a wholly owned subsidiary of NET Holdings Management, LLC, a privately held natural gas midstream and marketing company. The Company owns six intrastate gas pipelines in Texas and markets natural gas across the United States. The Company is owned 50% by its Founders and 50% by an affiliate of ArcLight Capital Partners, LLC. More information can be found at the company's website, www.netmidstream.com.