GAS NATURAL has acquired and taken effective control of five combined cycle plants and a gas pipeline, positioning the company as the second biggest private operator in the Mexican power generation market.

The operation has been approved by the Mexican regulators, by the Boards of Directors of the companies involved and by the French "Ministère de l'Economie et des Finances".

GAS NATURAL has taken effective control of five combined cycle plants acquired from EDF and Mitsubishi in Mexico, the operation having been finalised after obtaining the approval of the Mexican regulators, the French privatisation ombudsman and the Boards of Directors of EDF, EDF International and Mitsubishi Corporation.

The deal, involving assets valued at 1,448 million dollars, has received the blessing of the Federal Competition Commission (COFECO), the Federal Electricity Commission (CFE) and the Energy Regulatory Commission (CRE), the Mexican regulatory bodies responsible for assessing the transaction.

The authorisation granted by mean of a decree of the French "Ministre de l'Economie et des Finances" upon prior approval of the "Commisssion des participations et des transferts" (CPT) has been published at the "Journal Officiel".

This deal represents the entry of the Spanish energy multinational into the Mexican electricity generation business as the second biggest private operator, making GAS NATURAL the only operator of both gas and electricity in the country.

More than 6,300 MW of installed combined cycle generation capacity

GAS NATURAL operates, following this acquisition, a total of 6,373 MW of installed power generation capacity across Spain (3,600 MW), Puerto Rico (540 MW) and Mexico (2,233MW). It has a further 2,000 MW under construction or in the planning process in Spain.

The assets acquired in Mexico are the 495 MW Anahuac plant (Río Bravo II), the 495 MW Lomas del Real plant (Río Bravo III), the 500 MW Valle Hermoso plant (Río Bravo IV), and the 495 MW Electricidad Aguila Altamira plant, located in Tamaulipas State in the North West of Mexico. The company has also acquired a 54 kilometre pipeline which supplies these four plants, plus a fifth 248 MW power plant in Coahuila State, also in the North West.

These combined cycle plants have long term agreements with the Federal Electricity Commission (CFE) to take all of the electricity they produce. On the input side, the plants can also take advantage of long term gas supply agreements.

GAS NATURAL, gas operator in Mexico

GAS NATURAL is currently the leading natural gas distributor in Mexico through its subsidiary Gas Natural México, which has concessions to distribute natural gas in nine states, including the capital, Mexico D.F., with 1.1 million customers and a distribution network of more than 15,200 kilometres.

The number of customers GAS NATURAL distributes to in Latin America has recently surpassed the 5 million mark. The company has been operating on the continent for fifteen years, in Argentina, Colombia and Brazil, in addition to Mexico.