HOUSTON, Oct. 30, 2019 /PRNewswire-PRWeb/ -- MPL is developing a 12 mtpa LNG export facility on the Pacific Coast of Mexico, to be built in 3x4 mtpa phases, just south of the U.S. border leveraging abundant U.S. shale gas and existing pipeline infrastructure to deliver some of North America's cheapest landed LNG into Asia. MPL is using proven liquefaction technology and world class engineering and construction partners.
In connection with the transaction, President Josh Loftus stated, "We are pleased that both new and existing investors recognize the major progress our project has made in 2019. MPL is now fully permitted for FID with non-binding offtake agreements in place for the first phase. Focus is now on finalizing FEED, securing binding offtake and scaling up key team members prior to taking FID in Q4 2020. Our new investors add to the growing list of world-class partners who see MPL's strong project fundamentals and clear competitive advantage."
Mark McComiskey, a partner at AVAIO said, "Demand for a Pacific Coast of Mexico export outlet for US shale gas is proven, and we are excited to acquire control of MPL, the only other LNG project on the west coast of North America that can serve as an outlet for US shale gas that has all its major permits in place. This transaction serves as an exciting inflection point for MPL. We look forward to completing the final engineering and taking FID before the end of 2020."
"In our view, MPL is highly attractive due to its advantaged location for serving the Asian LNG market, its advanced stage of development and the quality of its current and incoming management," said Stephen Pang, Tortoise managing director and portfolio manager. "We believe that LNG is a key driver for and will be a main beneficiary of the energy transition story and support the goal to reduce global carbon emissions. Tortoise looks forward to the partnership with AVAIO Capital and the management team, whose development expertise continues to successfully advance the project."
A Kirkland & Ellis LLP team led by partners Shubi Arora, Jhett Nelson and Susan Eisenberg advised AVAIO Capital in the transaction.
About Mexico Pacific Limited LLC
MPL is a North American Pacific Coast provider of LNG that has substantial cost and logistical advantages in connecting the prolific Permian and San Juan gas basins in the United States to Asian markets. MPL's facilities will employ proven equipment supplied by Baker Hughes and will be built by a world leader in the engineering and construction of LNG facilities. MPL will build its 12 mtpa facility on a 1,100-acre site it owns in Puerto Libertad in Sonora, Mexico, roughly 125 miles south of the Arizona border. More information can be found at http://www.mexicopacificlimited.com.
About AVAIO Capital
AVAIO Capital is a build-to-core infrastructure investment firm led by professionals from investment, development, engineering, construction, and operating backgrounds. In aggregate, the team has completed more than $4 billion of equity transactions and over $50 billion of infrastructure development and construction projects across the water, transportation, digital and energy sectors. AVAIO makes equity investments in the creation and redevelopment of infrastructure assets throughout North America and Europe. More information can be found at http://www.avaiocapital.com.
Tortoise invests in essential assets – those assets and services that are indispensable to the economy and society. With a steady wins approach and a long-term perspective, Tortoise strives to make a positive impact on clients and communities. As of Sept. 30, 2019, Tortoise had $22.2 billion in assets under management. For additional information, please visit http://www.tortoiseadvisors.com.
SOURCE Mexico Pacific Limited LLC