U.S. Development Agency to Finance Mexico Natural Gas Pipeline
(P&GJ) — In one of the first actions of the new International Development Finance Corporation (DFC), the U.S. government investment organization is pledging more that $600 million to the Rassini natural gas pipeline to be built across southern Mexico.
In general, Mexico has generated a greater interest in the development of gas pipeline infrastructure projects and, in general, transportation by oil pipelines, according to specialists consulted by Opportimes, a Mexican business newspaper.
They report that the country has six new pipelines under construction with a combined operational capacity of 400 million barrels per day with an estimated investment of $2.7 billion.
Adam Boehler, newly appointed chief executive officer of the DFC, which is replacing OPIC, the Overseas Private Investment Corporation (OPIC), announced the agency’s plan during a meeting with Mexican Foreign Minister Marcelo Ebrard in Mexico City.
"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.”
In a statement, the U.S. embassy in Mexico said the so-called Rassini pipeline was an investment worth $632 million.
DFC is a new U.S. Government agency that modernizes the Overseas Private Investment Corporation (OPIC). After more than doubling its investment cap to $60 billion and equipped with new financial tools, DFC has more resources and flexibility to invest in priority regions such as Latin America. Boehler was confirmed as the agency’s first CEO on September 26.
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