AVAIO Capital acquires control of Mexican LNG facility

30 October 2019 - 12:00 am UTC

New York-based AVAIO Capital acquired majority control of the Mexico Pacific Limited (MPL) LNG export facility on 23 October, according to a 30 October MPL press release. 

The investor took control of MPL alongside minority partner Tortoise Capital Advisors in an all-equity transaction. AVAIO intends to invest additional equity and project finance debt when the project goes into construction in 2020, according to a source close to the situation. 

The sellers were not disclosed in the release, but prior investors in the project were DKRW Energy Sonora Holdings and AECOM Capital Private Infrastructure, the company from which AVAIO spun off in January 2019. 

Kirkland & Ellis provided legal advice to AVAIO Capital on the transaction. 

MPL plans to construct a scalable LNG liquefaction facility connected to the US shale gas grid by multiple gas pipelines and a deep-water port on the site. 

Mark McComiskey, a partner at AVAIO said, “Demand for a Pacific Coast of Mexico export outlet for US shale gas is proven, and we are excited to acquire control of MPL, the only other LNG project on the west coast of North America that can serve as an outlet for US shale gas that has all its major permits in place.”

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