Japanese groups tap BNP to sell Mexican thermal plant

Breaking News 23 February

Japanese groups tap BNP to sell Mexican thermal plant

By Jonathan Carmody

Mitsui and JERA have mandated BNP Paribas to run a sale process for their 525 MW Valladolid gas-fired power plant in Mexico, according to two sources familiar with the situation.  

BNP won the mandate early this year and the sale process for the asset should start in the next two weeks, the first source said.  

Valladolid is Mitsui and JERA’s last thermal generation plant in Mexico after the Japanese partners sold their 2,758 MW, five gas-fired power plant MT Falcon portfolio to Actis’ Valia Energy platform for USD 452m last year. 

The SPV for Valladolid is Compañía de Generación Valladolid, S. de R.L. de C.V.  

The combined-cycle, natural gas plant has been operating in Valladolid, Yucatan in Mexico’s southeastern peninsula since June 2006, according to JERA’s website

In 2003, Chubu Electric Power Company acquired an equity stake in a company to construct, operate, and maintain the 525 MW power plant in a joint investment with Mitsui & Co., and Calpine

In April 2006, Chubu and Mitsui & Co. acquired Calpine’s stake in the project, which provides Mexico’s energy authority with power under a 25-year long-term power purchase agreement. 

JERA acquired Chubu’s stake in July 2016.  

Recent M&A deals in the thermal generation sector have seen Valia acquire the Energía del Valle de México platform in January this year, in a deal also led by BNP, and Fisterra Energy sell its 875 MW Tierra Mojada CCGT plant to GIP-backed Saavi Energía in November 2022. 

BNP Paribas, JERA and Mitsui did not respond to requests for comment. 

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