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 -
spot_img

Most Popular

Greenpeace activists write a message on Croatian FSRU

Greenpeace activists wrote a message on Monday on the starboard side of the 140,000-cbm LNG Croatia FSRU located at...

Qatargas kicks off work on four giant LNG trains

LNG producer Qatargas, a unit of QatarEnergy, said it has started construction on four giant LNG trains in the...

Denmark’s Celsius charters LNG carrier quartet to Gunvor’s unit

Denmark’s Celsius Tankers, a unit of Celsius Shipping, has signed charter deals for its four LNG newbuilds with Clearlake...

More News Like This

Jera to sell stakes in Thailand power plants

Japan’s LNG trading giant Jera has agreed to sell stakes in two natural gas-fired combined-cycle power plants in Thailand. The...

Mitsui, Beach start work on Waitsia gas expansion project

A unit of Japan’s Mitsui & Co, along with its partner Beach Energy, have started building the second stage...

Japan’s Jera supplying ammonia to coal power plant

Japan’s LNG trading giant Jera has started supplying small volumes of ammonia to its coal-fueled Hekinan thermal power station...

Tokyo Gas enters small-scale LNG pact with Thailand’s PTT

Japan's city gas supplier and LNG importer Tokyo Gas is joining forces with a unit of the state-owned oil...