G.E. Financial Services to Fund $180 Million of Mexican Power Plant (NYSE: GE)

General Electric (NYSE: GE) Financial services, along with Spain-based Abengoa (MCE: ABG.MC) announced on Wednesday that they would invest $180 million to help develop the largest co-generation power plant in the country of Mexico

According to the press release released by the company, “The 300-megawatt gas-fired facility with a total project cost of US$640 million will be located at the Nuevo Pemex gas processing complex, owned by Pemex Gas y Petroquimica Basica, a subsidiary of Mexican state oil company Pemex. Located near Villahermosa, Tabasco, the plant will supply Nuevo Pemex with power and steam under a 20-year services agreement. Powered by cleaner burning natural gas, the facility will help the Mexican government meet its commitment to reduce greenhouse gas emissions by 50 percent below 2002 levels by the year 2050. To help meet these objectives, the government is promoting combined heat and power, or cogeneration, as an energy efficient option. ”

Construction of the plant began in September 2009 and commercial operation is expected to begin in 2012. The company is expected to supply 55% of Nuevo Pemex’s steam demand and all of its power demand. Additional power will be provided to other Pemex operations throughout Mexico through its national transmission system.

According to the statement, “The Nuevo Pemex complex processes gas from on- and off-shore Mexican gas fields. As agreed in a separate transaction between GE Energy and Abengoa announced Jan. 26, the cogeneration facility will use two GE Energy Frame 7FA gas turbines. GE’s F-Technology gas turbines have accumulated over 30 million combined operating hours around the globe. In addition, GE Energy signed a 20-year agreement to provide plant services, a key GE growth area. ”

“This transaction draws on our core strengths in structuring investments in long-lived, critical energy assets and expands our relationship with Abengoa,” said Alex Urquhart, president and CEO of GE Energy Financial Services.

“As Pemex’s first cogeneration plant under its development initiative, this facility will benefit from Abengoa’s and GE Energy Financial Services’ energy expertise and could serve as a model for other Pemex facilities,” said Alfonso Gonzalez, chairman of Abeinsa.