U.S. funds to invest $900 million in Mexican gas pipeline

TIJUANA, MEXICO - JUNE 27: A Pemex gas station attendant fills a car registered with a California license plate on June 27, 2008 in Tijuana, Mexico. With the cost of gasoline in California around $4.60 per gallon, many drivers are buying their fuel in Mexico for about $3.20. There is a price to pay for cheaper gas though. Mexican gas is formulated with more sulfur than California gas and that can damage the emission control equipment on US cars, causing them to fail emissions tests and leading to expensive repairs. In addition, unless a driver has other business in Mexico, part of their fuel savings will be burned up idling in a line that can easily last for hours to get back into the US. (Photo by David McNew/Getty Images) (2008 Getty Images)

MEXICO CITY (AP) – Mexico's state-owned petroleum company Pemex has signed an agreement giving two investment funds a 45 percent stake in a natural gas pipeline in exchange for $900 million.

The Los Ramones pipeline will transport natural gas from Texas to Mexico and is intended to facilitate imports of cheap U.S. gas and lower Mexico's high commercial electricity rates.

Mexico built the first part of the Los Ramones project, from the U.S. border to the northern Mexico village of Los Ramones in Nuevo Leon state. But Pemex has been battered by budget cuts and low oil prices and sought help to finish the line.

Pemex said Thursday that the second stage extending the pipeline to the central city of Guanajuato will be built with the investment from BlackRock and First Reserve.

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