Petroleos Mexicanos (Pemex) and private-equity firm First Reserve Corp. announced a US$1 billion joint venture (JV) to invest in energy infrastructure for Mexico, First Reserve said April 7.

The Los Ramones pipelines project will receive investments. There will be 744 kilometers of natural gas pipelines, and construction has already begun, with full commercial operations expected in mid-2016. Investments will also be placed in other large-scale energy infrastructure projects.

The JV marks “foreign confidence in the Mexican energy industry,” First Reserve, based in Greenwich, Conn., added.

"As global investors, First Reserve is excited to be expanding our existing portfolio in Mexico, where we have believed there to be attractive investment opportunities for some time. Through formal collaboration with Pemex, we feel we have gained substantial access to a region with strong supportive macro dynamics alongside a motivated and accomplished partner. First Reserve looks forward to mutually exploring multiple investment opportunities throughout the country's vast energy value chain on behalf of our investors and the country of Mexico," said William Macaulay, chairman and co-CEO.