IEnova, Pemex agree on JV sale

IEnova has reached an agreement with Mexico's state oil firm Pemex to restructure the sale of the latter's 50% stake in their JV Gasoductos de Chihuahua.

Last December, Mexico's federal competition commission (Cofece) ruled that Pemex must sell its 50% stake in Gasoductos de Chihuahua publicly, rather than directly to IEnova, which is the Mexican unit of US-based Sempra Energy.

IEnova announced Tuesday that it has reached an agreement with Pemex whereby the state oil firm is in conditions to comply with Cofece's ruling, and once the conditions are in place, IEnova can proceed to buy the 50% stake in the pipeline company.

Under the agreeement, IEnova would pay at least US$1.10bn for the 50% stake in Gasoductos de Chihuahua and the transaction is expected to be completed in 3Q16.

Gasoductos de Chihuahua is the parent company of seven other pipeline operators, including Gasoductos de Tamaulipas, Transportadora del Norte and Gasoductos del Noreste.

Pemex had announced last August it would sell the 50% share to IEnova for US$1.32bn, but the deal required approval by Cofece.

In its December ruling, Cofece stated that the acquisition of the stake by IEnova would not represent a threat to competition or result in monopoly practices.

Gasoductos de Chihuahua is building the Los Ramones I and II pipelines in Mexico, having been awarded contracts in 2013.