Jera, Tokyo Gas, Mitsui sell stakes in Mexican power plants

Japan’s LNG trading giant Jera and two compatriot firms have sold their stakes in MT Falcon Holdings, which operates five natural gas combined-cycle power plants in northeastern Mexico.

All three companies, including Tokyo Gas and Mitsui, sold their stakes to London-based private equity firm Actis GP.

Jera said in a statement it has concluded an agreement to sell its entire 20 percent stake in MT Falcon.

“Procedures for the sale are expected to be completed by March 2022 subject to approval by Mexican government authorities,” it said.

The joint venture of Tepco and Chubu Electric added it would continue to renew its portfolio going forward, “selling assets and reinvesting the proceeds as it optimizes its asset allocation for compatibility with a changing business environment and seeks to expand earnings.”

Tokyo Gas and Mitsui

In a separate statement, city gas supplier and LNG importer Tokyo Gas said it has entered into a sale and purchase agreement to sell its 30 percent stake in MT Falcon to Actis.

In order to achieve its management vision “Compass 2030”, Tokyo Gas would “enhance business expansion also in the global business such as renewable energy, gas and power supply, LNG infrastructure development,” the firm said

Also, it would “contribute to the society through corporate growth with the experience and
knowledge acquired from MT Falcon,” it said.

Japanese trading house Mitsui & Co also said in a statement it had entered into a deal with Actis to sell its 40 percent stake in MT Falcon.

Following the completion of the transaction, Mitsui would record approximately 7.8 billion yen ($71.3 million) as the loss from this transaction, it said.

Tohoku Electric has a 10 percent stake in the plants as well, but it did not issue a statement on the matter.

MT Falcon operates five natural gas thermal plants with a total capacity of 2,233 MW. These include Saltillo, Altamira II, Rio Bravo II, Rio Bravo III, and Rio Bravo IV.

Each power plant has a 25-year purchasing agreement with Mexico’s Federal Electricity Commission, according to Jera.

- Advertisements -

Most Popular

Delfin plans to take FID on first floating LNG producer in Q2

Delfin Midstream, the developer of a floating LNG export project in the Gulf of Mexico, is expecting to take...

QatarEnergy and ExxonMobil update on Golden Pass LNG work

QatarEnergy and ExxonMobil continue to make progress in building their $10 billion Golden Pass LNG export plant on the...

ExxonMobil working on larger Rovuma LNG export project in Mozambique

US energy giant ExxonMobil has boosted the capacity of the planned Rovuma LNG onshore terminal in Mozambique and is...

More News Like This

Jera, Chevron ink CCS pact

Japan’s LNG trader and power generation firm, Jera, and US energy giant Chevron have signed a memorandum of understanding...

Jera, Aboitiz plan to supply ammonia to coal power plants in Philippines

Japan’s LNG trader and power generation firm, Jera, has signed a deal with Aboitiz Power to look into ammonia...

Beach pens Waitsia deal with Webuild

Australia's Beach Energy has signed a deal with Italy's Webuild to complete the second stage of the Waitsia gas...

Japan’s Jera launches new LNG-fueled unit at Anegasaki power plant

Japan’s LNG trading giant and power generation firm, Jera, has started commercial operations at the first of three new...