Newly established Mexico energy infrastructure developer Avant Energy S. de R.L. de C.V. has received an initial line-of-equity investment of $150 million from Riverstone Holdings LLC.
The amount may be increased to $300 million once initial capital has been invested, Avant said. Company executives have also made additional capital commitments for undisclosed amounts.
With offices in Mexico City, Monterrey and Houston, Avant said it plans to focus on developing, constructing and operating infrastructure for Mexico's oil, natural gas, refined products and electricity sectors, as well as participate in the recently liberalized markets for these products and services.
The company is to be led by Jaime de la Rosa, Luis Farias, Jaime Williams, and Antonio Noyola, senior executives with track records at companies including Cemex, Gas Natural Fenosa, Mitsui Power Americas and Gas Industrial de Monterrey. They are to be joined by Lenny Lee, Roy Piskadlo, and Richard Jefferis; the group of executives has held leadership positions at firms including Entergy-Koch, Merrill Lynch Commodities and AES.
"We are very excited to partner with some of the most recognized energy executives in Mexico and the U.S. to launch what we hope will become one of Mexico's leading independent midstream and power infrastructure platforms," said Riverstone Managing Director Alfredo Marti. "We are particularly pleased that our investment represents capital from Mexican pension funds through our CKD fund, as well as from international investors who are enthusiastic about the country's potential."
Riverstone is also an investor in Mexico's upstream sector. It's not the only private equity player in Mexico. Last year KKR and Monterra Energy formed a joint venture targeting investment in Mexico terminaling, storage, pipeline and rail assets for refined products, crude oil and natural gas liquids. Also last year, BlackRock and First Reserve agreed to take a 45% stake in the phase two segments of Petroleos Mexicanos (Pemex) Los Ramones Pipeline Project.
To get a better picture of the developing natural gas market in Mexico, including operational and in-process projects, as well as where the U.S./Mexico import and export points are, check out NGI’s 2017 Map of Emerging Mexico Natural Gas Pipeline Infrastructure.