Howard Energy Partners Receives Financing for Nueva Era Pipeline Project
Howard Energy Partners, LLC’s subsidiary, Nueva Era Pipeline, LLC has closed on $353.3 million in project financing for the construction of the Nueva Era pipeline project. A 50-50 joint venture between Howard Energy Partners and Mexico-based energy and services firm Grupo CLISA, the Nueva Era pipeline project will connect Howard Energy Partners existing Webb County Hub in South Texas directly to Monterrey, Nuevo León, Mexico. The banks that provided financing for the Nueva Era project include MUFG, Santander, Societe Generale, Sumitomo Mitsui Banking Corporation, and CaixaBank.
Construction activities began earlier this year on the approximately 200-mile, 36- and 30-inch Nueva Era pipeline, which will provide seamless transportation service for approximately 600 million cubic feet per day of natural gas (expandable to 900 million cubic feet per day), connecting producers in South Texas directly with end-users in northern Mexico. The Comision Federal de Electricidad, Mexico’s state-owned electric utility, is the anchor shipper on the Nueva Era project, having committed to transport 504 million cubic feet of natural gas per day on the system for a 25-year term, to help fuel combined-cycle power plants in Escobedo and Huinalá, near Monterrey. The Nueva Era pipeline also offers natural gas transportation services to private shippers on an open access basis. The project is expected to be completed and in service in the second half of 2017.
“The closing and funding of project financing for Nueva Era marks a significant milestone for us as we continue on-schedule with construction of the project,” said Howard Energy Partners Chief Financial Officer Scott Archer. “While the Nueva Era pipeline is the result of years of hard work and collaboration by many groups of people, our overall goal remains; to provide northern Mexico’s industrial centers with access to competitively-priced natural gas, while providing South Texas producers direct access to new and emerging markets. We are excited to keep moving forward.”
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