The Chihuahua Pipeline

The Chihuahua Pipeline
Mexican Energy
New Perspectives on Energy Policy
and Gas Supply for
Economic Growth
Octavio Berrón C.
Houston Tx, Nov. 13, 2012
1. Who is Fermaca Global?
With 50 years of history, Fermaca Global is a
leading transporter of natural gas in Mexico, being
the only Mexican company in this industry.
Today we provide transportation services to one
of the key urban industrial areas in Central Mexico
and we are building the most important, privately
owned pipeline in the North, with interconnection
to the USA.
By combining a wide range of products and
services, including engineering, construction,
project management, and SCADA control, with
our know-how of the institutional and legal
framework of the Mexican economy, we can
guarantee long-term success in Mexico’s energy
market.
Houston Tx, Nov. 13, 2012
SASABE
2. Natural Gas Infrastructure
In Mexico
EL PASO
LNG
Costa
Azul
PUERTO
LIEBERTAD
CHIHUAHUA
GUAYMAS
REYNOSA
TORREON
TOPOLOBAMPO
MONTERREY
LNG
Altamira
SAN LUIS
POTOSI
MAZATLAN
~
AGUAS
CALIENTES
VALLADOLID
GUADALAJARA
UNDER CONSTRUCTION
MEXICO CITY
FERMACA CHIHUAHUA PIPELINE
CURRENT NG INFRASTRUCTURE
FERMACA TGT PIPELINE
TOLUCA
MANZANILLO
MORELOS
LAZARO
CARDENAS
CFE RECENTLY AWARDED
LNG IMPORT TERMINAL
LONDON,
UK.Tx,
NOVEMBER
2012.
Houston
Nov. 13,7,2012
PAGE 4
3. Project Milestones and Status
Dec ‘11: Project awarded to Fermaca
Jan ‘12: TSA sign & USD 30M STBL delivered 10 days after
Feb ‘12: Equity Contribution and Down payments to EPC and pipe suppliers
Feb ‘12: ROW acquisition starts: 382km 6 248 land owners
April ‘12: Project Finance Signing
May ‘12: Financial Closing
June ‘12: Pipe starts arriving to Chihuahua & EPC starts construction activities
Nov ‘12:
100% ROW O&S
100% Pipe @ site
61% Row clearing
42% welding
18% string and lay
Houston Tx, Nov. 13, 2012
4. The Chihuahua Pipeline Financing/Players
Ind. Engineer
Insurance
Security
Legal US
Legal Mex
Houston Tx, Nov. 13, 2012
5. The Chihuahua Pipeline Financing/Description
Amount: USD 378M (among 7 Banks)
Structure: 7 year Miniperm (2+5)
Balloon: +/- 80%
Cash sweeps: Last 2 years
IRS requirement: 75% provided by bank group
Other requirements:
Minimum and average DSCR
DSRA funded by COD
Limitations for Change in Control during construction
Other customary (R&W, Guaranty Package, etc).
Current Status:
We are @ 8th monthly draw request, and flowing normally.
Houston Tx, Nov. 13, 2012
6. Project Financing Challenges
First Pipeline Project Finance in Mexico in the recent years.
Row acquisition process.
Large group of banks
VAT independent financing
Security in Mexico
Houston Tx, Nov. 13, 2012
7. Graphic Update
Houston Tx, Nov. 13, 2012
7. Graphic Update
Houston Tx, Nov. 13, 2012
7. Graphic Update
Houston Tx, Nov. 13, 2012
7. Graphic Update
Houston Tx, Nov. 13, 2012
Welcome to Mexico. Call us if you need directions.
www.fermaca.com.mx | letstalk@fermaca.com.mx | +52 55 5148 6700