The Abraaj Group, a Dubai-based investment firm, announced it has invested in a 111 MW natural gas-fired power plant in Mexico as the first phase of the company’s plan to develop a 500 MW power generation platform in the country.
The plant is strategically located in the northern state of Chihuahua, which provides reliable access to competitive natural gas.
In order to move the project forward, the company has partnered with Emerging America – a Mexican firm that develops natural gas-fired projects. No investment figures were mentioned in the announcement by the group.
The 500 MW platform is being financed with debt from local banks Banorte and Nafinsa, and is expected to commence operations at the beginning of 2019.
“This plant represents the first of many investments that Abraaj intends to carry out in the Mexican energy infrastructure sector,” said Saad Zaman, partner at The Abraaj Group, in a statement.
“We have an advanced pipeline of attractive projects and will leverage our global energy expertise to develop complementary natural gas-fired and renewable energy platforms,” he added.
“Buoyed by a strong regulatory framework, the Mexican energy infrastructure sector is a long-term and sustainable investment opportunity for Abraaj. We are delighted to partner with Emerging America to deliver efficient and more affordable power to the country,” stated the company in the brief.