Canadian asset manager Brookfield Infrastructure Partners is working with Morgan Stanley on a sale process for its 50% stake in the Los Ramones Norte II gas pipeline, sources familiar with the situation told Infralogic.

The sources could not say if bids have already gone in for the manager’s stake in the pipeline, which it co-owns with San Diego-based Sempra, but that the stake would suit strategic investors or an infrastructure fund.

In December 2019, Brookfield Infrastructure Fund IV (BIF IV) paid BlackRock USD 550m to acquire its 50% stake in the Los Ramones II Northern gas pipeline, which runs 450km (280 miles) from Nueva León state to San Luis de Potosí state, and its 45% stake in the Los Ramones II southern pipeline, which runs 290km through the states of Tamaulipas, Nuevo León, San Luis Potosí, Querétaro, and Guanajuato.

Sempra owns 50% of the northern pipeline and 50% of the southern pipeline. Mexican state energy company Pemex co-developed the pipelines with Sempra and still owns 5% of the southern pipeline.

BlackRock and Sempra originally invested in the second phase of Pemex and Sempra’s Los Ramones pipeline projects in 2015.

The assets are financially optimized and very stable assets but without much upside for buyers, the first source said.

In November 2023, the owners refinanced an upsize of the concessions’ debt from USD 280m to USD 545m for both Los Ramones II pipelines.

SPV TAG Pipelines Norte SRL has USD 1,654.51m in bank debt and USD 332m in bonds, according to Infralogic data.

Brookfield and Morgan Stanley declined to comment.