ContourGlobal enters exclusivity for Mexican cogen assets

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Alpek and ContourGlobal have entered into a 60-day exclusivity period to conduct confirmatory due diligence and negotiate final agreements in relation to ContourGlobal’s potential acquisition of Alpek’s cogeneration power plants in Cosoleacaque and Altamira, Mexico.

Alpek and ContourGlobal will disclose the economic terms of the potential transaction upon signing of the final agreements. The closing of this transaction is subject to approval by the appropriate authorities, among other conditions. The transaction could include the following assets:

• A facility located at Cosoleacaque, Veracruz can produce 95 MW of clean renewable electricity. Steam and some of the power will be consumed by Alpek, and the excess power will be sold out to third parties. The plant is expected to produce estimated savings of about US$40 million per year.
• A plant located at Altamira is a 350 MW facility comprised of one Siemens Gamesa's SGT6-8000H gas turbine, one SST-800 steam turbine, one SGen6-100A generator, and one SGen6-2000H generator. The facility is located at Tamaulipas, northeastern Mexico.

Alpek is a petrochemical company operating two business segments: “Polyester” (PTA, PET and polyester fibers), and “Plastics & Chemicals” (polypropylene, expandable polystyrene, caprolactam, and other specialty and industrial chemicals). Alpek is an integrated producer of PTA and PET in North America, the largest expandable polystyrene manufacturer in the Americas, and the only producer of caprolactam in Mexico.

ContourGlobal is an international power generation company with approximately 4,100 MW in operation in 19 countries across Europe, Latin America and Africa. ContourGlobal operates a portfolio of 69 thermal and renewable power plants utilizing a wide-range of technologies including wind, solar, hydroelectric, natural gas and coal.

We have recently reported about several projects in Mexico:

• 478 MW Agua Prieta II CSP plant in Agua Prieta
• Liquefied Natural Gas (LNG) PPP Project in Puerto Libertad
• 301.5 MW Central Fotovoltaica Ranchitos solar PV plant in Jalisco state
• 153 MW Cepeda Solar Park in Coahuila state
• Topolobampo Gas Pipeline Branch
• Ramones Phase II South gas pipeline
• 887 MW Topolobampo II (Noroeste) combined cycle power plant in Sinaloa
• 766 MW Topolobampo III combined cycle power plant in Sinaloa
• 350 MW Solem solar PV project in Aguascalientes