The Inter-American Development Bank has approved loans totaling $225 million to help finance the first open access, common carrier natural gas pipeline in Mexico.
The bank said Energia Mayakan SA would receive a loan of up to $75 million from the bank's ordinary capital and a second loan of up to $150 million from commercial banks through "subscription of participation" agreements with IADB.
The loans will help finance the design, engineering, and construction of 700 km of pipeline from Ciudad Pemex to the cities of Campeche, Merida, and Valladolid.
The pipeline, which will range in diameter from 16 in. to 24 in, will deliver up to 260 MMcfd late in 1999 to power plants and other industrial customers, reducing their use of fuel oil.
Capacity will be expanded to 370 MMcfd by 2012.
IADB said the project is the first major, open access, privately owned and operated gas pipeline in Mexico.
Sponsors include TransCanada Pipelines Ltd., InterGen, and Gutsa Construcciones SA.
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