Kogas signs US$1.5 billion Mexico LNG terminal deal

Kogas signs US$1.5 billion Mexico LNG terminal deal

Mon 15 Aug 2016 by Karen Thomas

South Korea-based utility Korea Gas Corp (Kogas) has signed a memorandum of understanding with the state government of Yucatan in Mexico to build an LNG terminal and supporting infrastructure to supply gas to southeastern cities including the state capital Merida and tourist hotspot Cancun.

Kogas estimates that the project, which centres on an import terminal built at the Gulf of Mexico port of Progreso, is worth US$1-US$1.5 billion. Kogas will start a feasibility study shortly. One of the world’s largest importers of LNG, Kogas hopes to sign similar agreements with other state governments in Mexico, according to reports from South Korea.

Mexico plans to increase its use of gas for power generation. However, the US-based Energy Information Administration (EIA) reported last autumn that Mexican LNG imports are shrinking as the country increases its cross-border imports of natural gas delivered by pipeline from the US.

The country has a five-year, US$11 billion plan to build pipelines and infrastructure to import natural gas, including a compressor station in Chihuahua State and 13 other projects. Since 2010, the US has reportedly more than tripled its piped exports of natural gas to Mexico to some 3 billion cubic feet a day (bcf/d). By 2019, 15 new pipelines will more than double existing capacity to some 15 bcf/d. 

http://www.lngworldshipping.com/news/view,kogas-signs-us15-billion-mexico-lng-terminal-deal_44147.htm

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