Abraaj Group has invested in a gas-fired power plant project in Mexico as part of a strategy to build a 500 MW portfolio in the country.
The Dubai-based investment firm says that the new plant, located in Chihuahua, will be on-line in early 2019 and will “enjoy a first-mover advantage” in Mexico’s new wholesale power market.
Abraaj said in a statement that there is a “large and growing demand for competitively priced energy in Mexico” thanks to increasing demand for power from the manufacturing sector and a growing middle class. It plans to leverage its global energy expertise to invest in gas-fired and renewable power generation projects, and natural gas midstream sector ventures.
It has partnered with Emerging America (EMA), a Mexican firm that is developing natural gas fired projects, it added.
Its first power plant will be one of the first to come into operation under Mexico’s new legal and regulatory power sector framework. “This plant represents the first of many investments that Abraaj intends to carry out in the Mexican energy infrastructure sector,” said Saad Zaman, Partner at Abraaj. “We have an advanced pipeline of attractive projects and will leverage our global energy expertise to develop complementary natural gas-fired and renewable energy platforms.
“Buoyed by a strong regulatory framework, the Mexican energy infrastructure sector is a long-term and sustainable investment opportunity for Abraaj.