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Bank of China contributes to $646.98 million syndicated loan for Waha–Presidio Natural Gas Pipeline project in Texas
| Funder | Bank of China (BOC) |
|---|---|
| Recipient Organization | Trans-Pecos Pipeline, LLC |
| Country | Mexico |
| Start Date | Nov 17, 2015 |
| End Date | Feb 20, 2032 |
| Duration | 5,939 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 108879 |
Grant Description
Bank of China contribution to USD $646.98 million syndicated loan for Waha–Presidio Natural Gas Pipeline project in Texas and Mexico in 2015 In January 2015, the Federal Electricity Commission (CFE, Comisión Federal de Electricidad) granted Carso Energy a contract for the provision of gas transportation services through the Waha-Presidio natural gas pipeline and Waha-San Elizario natural gas pipeline, both located in the state of Texas, in the United States of America.
Then, on November 17, 2015, Trans-Pecos Pipeline, LLC — a special purpose vehicle and joint venture of Carso Energy Corp. (51% equity stake), MasTec TPP, LLC (33% equity stake) and Energy Transfer Mexicana, LLC (16% equity stake) — signed a $646.98 million syndicated debt financing package with a group of lenders for the Waha-Presidio Natural Gas Pipeline PPP Project.
The members of the syndicate reportedly included Bank of China, Bank of Tokyo, BBVA, Mizuho Bank, Sumitomo Mitsui Banking Corporation, Caixabank, ING Group, Intesa San Paolo, and Banco de Sabadell. The package consisted of a $564.2 million term loan and a $82.7 million letter of credit. The debt had a tenor of construction plus 18-years.
The purpose of the project was to develop the Waha-San Presidio Natural Gas Pipeline, a 230 km natural gas transportation pipeline running from Fort Stockton, Texas, to Presidio, Texas, and under the Rio Grande to Ojinaga, Mexico, where it connects with the Ojinaga-El Encino Gas Pipeline.
Energy Transfer Mexicana, LLC applied for its FERC permit in May 2015, received a favorable Environmental Assessment in January 2016, and received final FERC approval to build the pipeline in May 2016. It then applied for the necessary state T-4 permit from the RRC in January 2015 and received the permit in April 2015.
A request by the Big Bend Conservation Alliance (BBCA) for a rehearing with FERC was denied in November 2016. Construction began in September 2016, and the pipeline went into service on March 31, 2017.
Staff Comments
- Lummus Consultants International was a technical adviser to the lenders, Milbank, Tweed, Hadley & McCloy was their legal adviser. Shearman & Sterling acted as legal adviser to the sponsor.
- For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.
- One source indicates the Korea Development Bank participated in the syndicate and Bank of China did not. This issue warrants further investigation.
Sources & References
- PFI League Tables 2015
- Waha-Presidio Natural Gas Pipeline PPP
- Waha gas pipelines
- US
- Carso Energy Annual Report 2016
- MasTec
- Inc. AFFILIATED ENTITIES
- Trans-Pecos Gas Pipeline
- Energy Transfer Announces That the Trans-Pecos Pipeline
- Comanche Trail Pipeline, and the WAHA Header Are in Service
- Trans-Pecos Pipeline
- LLC; Notice of Application Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
All Grantees
Trans-Pecos Pipeline, LLC
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