Macquarie Asset Management and ENGIE agree to partner to carry out the construction of a 700-kilometer natural gas pipeline in the Yucatán Peninsula

• The partnership will execute a historic natural gas transportation project, which will double the natural gas transportation capacity for the Yucatán Peninsula with a natural-gas pipeline of more than 700 kilometers that will pass through the states of Chiapas, Tabasco, Campeche and Yucatán.
• This project is carried out under a 30-year contract with the Mexican Federal Electricity Commission (CFE), which enables the transportation of natural gas to the combined-cycle plants recently built by the CFE in the Yucatán Peninsula.

ENGIE, a leading global energy group, and an unlisted infrastructure fund managed by Macquarie Asset Management, have signed an agreement to partner and carry out the expansion of the Mayakan natural-gas pipeline that will double natural gas transportation capacity for the Yucatán Peninsula.

The signing of this strategic alliance between both organizations will strengthen the energy infrastructure in Mexico and provide safe and affordable energy for the two combined-cycle plants that the Federal Electricity Commission (CFE) is building in the region.

This natural gas transportation project is one of the most important to be built in Mexico to accelerate the energy transition, and it aims to reduce carbon footprint by up to 7.4 million tons of CO2 equivalent per year.

According to Felisa Ros, Country Manager of ENGIE Mexico: “ENGIE's alliance with Macquarie Asset Management will strengthen our company's commitment to initiate the development of energy infrastructure projects that positively impact the development and well-being of the regions.”

This project will trigger economic development and attract investment in the 4 states that make up this strategic territory: Chiapas, Campeche, Tabasco and Yucatán.

“We recognize the importance that investment in critical infrastructure plays in helping to meet growing energy demand while reducing fuel oil emissions in Mexico,” said Ernesto Gonzalez, Managing Director, Macquarie Asset Management.

“We are proud to partner with ENGIE on the Mayakan System expansion project and look forward to working with them to address energy scarcity in the region.”

Upon completion of its construction, the expansion of the Mayakan gas pipeline will be able to satisfy the current demand for electricity generation from the current and future CFE plants and will supply the natural gas required by the region's existing industry and its future growth.

BofA Securities, Inc. (“BofA Securities”) and Sumitomo Mitsui Banking Corporation (“SMBC”) acted as financial advisors to ENGIE in this transaction.

Rothschild & Co. acted as financial advisor to Macquarie Asset Management in this transaction.

About ENGIE

ENGIE is a global reference in low-carbon energy and services. With its ~ 97,000 employees, customers, partners and stakeholders, the Group strives every day to accelerate the transition towards a carbon-neutral economy, through lower energy consumption and more environmentally-friendly solutions. Inspired by its mission statement, ENGIE reconciles economic performance with a positive impact on people and the planet, leveraging its key businesses (gas, renewable energy, services) to offer competitive solutions to its customers. Turnover in 2023: ~ €82.6 billion. The Group is listed on the Paris and Brussels Stock Exchanges (ENGI) and is represented in the main financial (CAC 40, Euronext 100, FTSE Euro 100, MSCI Europe) and non-financial indices (DJSI World, Euronext Vigeo Eiris - Europe 120 / France 20, MSCI EMU ESG with selection, MSCI EUROPE ESG Universal Select, Stoxx Europe 600 ESG-X).

About ENGIE Mexico

With a presence of more than 25 years, we have promoted access to safe and affordable energy for the development and well-being of Mexicans. We are an important private buyer and distributor of natural gas in Mexico. We are present in 21 states of Mexico, offering a diverse energy matrix for the comprehensive development of the country in transportation and distribution of natural gas, renewable and thermal generation, marketing of gas and electricity.

Our social approach at ENGIE seeks to fundamentally transform the quality of life of the communities neighboring our energy projects, through long-lasting and sustainable initiatives over time, impacting almost 300,000 beneficiaries.

Other than Macquarie Bank Limited ABN 46 008 583 542 (“Macquarie Bank”), any Macquarie Group entity noted in this document is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia).  The obligations of these other Macquarie Group entities do not represent deposits or other liabilities of Macquarie Bank.  Macquarie Bank does not guarantee or otherwise provide assurance in respect of the obligations of these other Macquarie Group entities.  In addition, if this document relates to an investment, (a) the investor is subject to investment risk including possible delays in repayment and loss of income and principal invested and (b) none of Macquarie Bank or any other Macquarie Group entity guarantees any particular rate of return on or the performance of the investment, nor do they guarantee repayment of capital in respect of the investment.