Three companies announced they will be working together to jointly build and operate a natural gas-fired, combined-cycle power plant in Mexico. The total investment for the plant is expected to be $1 billion.
Ternium S.A. (NYSE: TX), Tenaris S.A. (NYSE: TS) and Tecpetrol International S.A. signed a memorandum of understanding to build the plant that will supply Ternium’s and Tenaris’s respective industrial facilities in Mexico.
The plant will be built in the Pesqueria area of the state of Nuevo Leon and would have a generating capacity of between 850 and 900 MW. The project will be done by a joint venture named Techgen S.A. de C.V., which would be 30 percent owned by Tecpetrol, 22 percent by Tenaris and 48 percent by Ternium.
The plant is scheduled to begin operations by late 2016.