Mexico's state electricity company, the Comision Federal de Electricidad, is responsible for the country's first liquefied natural gas project financing. Its generation fleet's thirst for gas has accomplished what Mexico's aversion to private investment in oil and gas has so far hindered.
The $876.4 million Manzanillo project financing, aside from marking a first in the country, marks a swift recovery in lender appetite for Latin oil and gas assets. Its keen terms – especially its tenor – would be enviable in any financing environment. It brought together some of the largest sponsors from Korea and Japan, countries that have usually competed for natural resources.
The Manzanillo terminal will be located at the port city of the same name in Colima state, on Mexico's Pacific coast. The city is Mexico's busiest port, but more important to the project is the location's proximity to generation capacity that the CFE wants to refurbish to...
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