Iberdrola sells $6bn in gas assets to Mexico Infrastructure Partners

Iberdrola Mexico and Mexico Infrastructure Partners (MIP) have signed a memorandum of understanding, whereby MIP will acquire 8,539MW of installed capacity from Iberdrola.

Of the total, 8,436MW corresponds to combined cycle gas and 103MW to wind.

Of the plants included in the agreement, 87% of the total installed capacity to be divested currently operate under the regime of Independent Energy Producers, contracted with the Federal Electricity Commission (CFE).

These plants include the combined cycles of Monterrey I and II, Altamira III and IV, Altamira V, Escobedo, La Laguna, Tamazunchale I, Baja California, Topolobampo II and Topolobampo III, as well as the wind asset La Venta III.

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The privately operated combined cycle gas plants of Monterrey III and IV, Tamazunchale II and Enertek are also included in the agreement.

Iberdrola has confirmed that the agreed value for the sale amounts to approximately $6 billion.

The transaction is subject to the agreement and the signing of definitive contracts by the parties, as well as obtaining the necessary regulatory approvals and the fulfilment of certain conditions that are standard in this type of operation.

The operation has the financial support of the National Infrastructure Fund of Mexico (Fonadin) and other public financial entities associated with the Government of Mexico.

Andrés Manuel López Obrador, president of the Government of Mexico said: "The agreement reached with Iberdrola, which allows progress in the implementation of Mexico's new energy policy, represents the beginning of a new stage in which the company will actively participate in the renewable development of the country."