Arroyo Energy secures US$126 million financing to build gas-fired power plant in Nuevo Leon
Arroyo Energy Investors, a Texas-based subsidiary of BE Investment Holding focused in power generation projects, has secured a US$ 126 million financing to build a gas-fired power plant in the municipality of Pesqueria, Nuevo Leon, northern Mexico.
Natixis, New York Branch, Sumitomo Mitsui Banking Corporation and The Korea Development Bank acted as lenders and structurers of the loan.
The facility will be located in the Propark industrial park and will be supplied with natural gas through a nearby gas pipeline operated by Kinder Morgan, one of the largest energy infrastructure companies in North America.
PemCorp, S.A.P.I. de C.V., subsidiary of Arroyo Energy, will be responsible for developing the project.
According to a statement by Paul Hastings LLP, the law firm that represented Arroyo Energy in the process, the 129 MW power plant will benefit “from a private power purchase agreement with a major Asian industrial off-taker”.
This agreement has the particularity that the energy will be acquired under the figure of “isolated supply”, one of the most recent legal elements incorporated into the legislation of the utility sector in Mexico.
Although the statement does not identify PemCorp’s customer, it is known to be the Korean automaker KIA Motors, which operates an assembly plant in the same municipality.