Pemex to upgrade creaky infrastructure in $900m deal

The deal will work on a natural gas pipeline project to expand the company's infrastructure

Mexico's energy reforms have opened oilfields to foreign investors, so it was a bit of a surprise that Pemex's first deal was a $900m equity transaction with a pair of US private equity funds for a natural gas pipeline project. But it made sense. Mexico's energy infrastructure badly needs to be expanded and upgraded if the sector is to perform as the architects of the reforms hope it will. Billions of dollars in new funding will be necessary. Pemex's deal with BlackRock and First Reserve to sell a 45% stake in the 460 mile Las Ramones II pipeline project, which will ship gas from Texas to central Mexico, is probably just the first of many such deals to fund new infrastructure, especially to