Global investment firm KKR entered a new joint venture (JV) with Mexico’s Monterra Energy, focused on midstream investments in Mexico, the firm said May 15.

Under the JV, KKR will provide equity to Monterra to develop and acquire new midstream assets and businesses. Financial terms were not disclosed.

Monterra will own, develop, build and operate midstream infrastructure through greenfield and brownfield projects and assets. These include refined product terminaling and storage infrastructure, NGL, pipeline and rail assets. Natural gas transportation and storage and power generation are also included.

Energy investment bank Tudor, Pickering, Holt & Co. estimated Mexico should attract about $50 billion and $13 billion in capex for pipeline infrastructure and power generation, respectively, over the next five years.

Arturo Vivar and Michael A. Williams founded Monterra in 2014, and the company has offices in Houston and Mexico City. It handles upstream, midstream and oilfield services in North and South America, KKR said.

"Monterra is excited to partner with KKR," said Vivar, CEO. "Together with KKR and its investment expertise, Monterra will provide a differentiated set of capabilities that can be applied to the development and operation of strategic midstream projects and assets in Mexico."

Jorge Fergie, KKR's head of Brazil and Latin America, added: "We are very optimistic when it comes to the macroeconomic landscape in Mexico, and we continue to believe the country has significant opportunities—in energy and beyond—for long-term investment."

KKR & Co. is based in New York.