Intergen Gets Conduit Gas Asset

06/24/2008

Author:
Intergen
Burlington, MA
United States
www.intergen.com

Categories:
Private Equity

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InterGen to Acquire Libramiento Gas Compression Station and Pipeline from Conduit Capital

Article:
Burlington, MA, June 20, 2008 – InterGen and Conduit Capital Partners, LLC announced today that InterGen has executed a purchase agreement to acquire the Libramiento natural gas compression facility, located adjacent to InterGen’s Compresión Bajio Project in northern Mexico, and an associated 65-kilometer natural gas pipeline. InterGen will acquire the project from Conduit Capital Partners, LLC and minority partners including Green Energy and Infraestructura Para Energía.

The Libramiento facility is fully contracted for 20 years with Mexico’s state-owned petroleum company, PEMEX. The total value of the transaction is $88.1 million, and will be funded by a combination of InterGen equity and limited-recourse debt. The transaction is expected to close later this summer upon approval by the Mexican authorities.

Neil H. Smith, President and CEO of InterGen, said “We are pleased to be acquiring the Libramiento natural gas compression and pipeline project as it is a strong complement to our neighboring Compresión Bajio Project, and because it will further expand our well-established Mexican energy portfolio.”

“This is another great example of Conduit's successful investment strategy in Mexico,” said J. Scott Swensen, Chairman of Conduit. “We became involved early with the developer, Green Energy, during the pre-construction phase of the project and contributed not only capital but also sector, country, and management expertise. There were several significant challenges along the way – including rights of way issues and a tight construction schedule – which we overcame by working closely with PEMEX, our local partners and various Mexican government institutions. Looking ahead, Mexico remains one of our target markets, and we have several new projects in development.”

About InterGen
InterGen is a global power generation firm with nine power plants representing an equity share of 5,235 MW of production capacity. InterGen’s plants are located in the UK, the Netherlands, Mexico, the Philippines and Australia. Additionally, InterGen’s 428 MW MaasStroom Energie project, located in the Netherlands, is currently under construction. InterGen is jointly owned by the Ontario Teachers’ Pension Plan and AIG Highstar Capital II, L.P.
For more information on InterGen, visit www.intergen.com.

About Conduit Capital Partners, LLC
Based in New York City, Conduit Capital Partners, LLC is a private equity investment firm focused on the independent electric power and energy industry in Latin America and the Caribbean through its management of the Latin Power Funds. Latin Power I was the first private equity fund dedicated exclusively to infrastructure
investments. The Funds have made investments in Mexico, Chile, Peru, Brazil, Argentina, Colombia, Jamaica, Honduras and Guatemala. Conduit is presently investing its $393 million Latin Power III fund.