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Esentia Energy Development to Acquire Gas Pipeline in Mexico for $400 Million

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Mexico-based Esentia Energy Development will acquire the Guadalajara-Manzanillo natural gas pipeline system following an agreement to purchase 100% of the equity interests of Energia Occidente de Mexico for $400 million, it said Tuesday.

The gas network spans 313 kilometers from the Guadalajara area in Jalisco to Manzanillo, Colima. Its first segment is 5.5 kilometers long and has a transportation capacity of 500 million standard cubic feet per day, while the second segment is 307.3 kilometers long and has a capacity of 360 mmscf/d.

As it is directly connected to Esentia's existing Villa de Reyes-Aguascalientes-Guadalajara pipeline system, Esentia said its network will expand from the Permian Basin in Texas to the Mexican Pacific coast following the deal.

"The acquisition is consistent with Esentia's strategy to build a cohesive cross-border transportation system through disciplined merger and acquisition and low-risk opportunities that capitalize on our existing infrastructure," Chief Executive Daniel Bustos said.

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