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US Development Finance Corporation to finance natural gas pipeline in Mexico

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The US International Development Finance Corporation (DFC) has recently signed a letter of interest to finance a natural gas pipeline in southern Mexico.

The agreement for the pipeline, which will be developed by Rassini S.A.B de C.V., was signed by DFC CEO Adam Boehler during a recent visit to Mexico. The announcement follows a joint declaration by the US and Mexico in December 2018, which strengthened bilateral cooperation to support private sector investment and foster development in Mexico’s southern states.

The $632 million (€572.9 million) pipeline will serve southern Mexico, with the potential to serve other markets in the region in the future. The project will encourage economic growth in the region by responding to growing energy needs and supporting the development of the private oil and gas sector.

DFC’s support for part of the project is subject to a comprehensive review process and the establishment of commercially-viable offtake agreements with utility providers in Mexico.

"Private sector investment is essential to promoting the development of prosperous, stable, and secure communities across Mexico,” said Boehler. “This pipeline will foster development in the south of Mexico while strengthening energy security and facilitating trade. These advancements will accelerate economic growth and create transformative opportunities in southern Mexico to improve quality of life.”

DFC is a new US Government agency that modernises the Overseas Private Investment Corporation.