Marathon consortium awards EPC contract for Baja California Regional Energy Center

By OGJ editors

HOUSTON, Jan. 13 -- Marathon Oil Co., on behalf of its joint development partners in the Baja California Regional Energy Center project in western Mexico, has selected Houston-based KBR (Kellogg Brown & Root) and Techint SA de CV of Argentina as engineering, procurement, and construction (EPC) contractors for the project.

As previously announced (OGJ Online, Mar. 1, 2002), the Baja California Regional Energy Center is an integrated complex to be sited near Tijuana, Mexico. It is expected to contain an LNG offloading terminal and regasification plant, a 1,200 Mw power generation plant, a 20 million gpd water desalination plant, wastewater treatment facilities, and natural gas pipeline infrastructure.

The complex is expected to be designed with a capacity to regasify as much as 750 MMcfd of LNG to meet local needs and for export to southern California.

Other project partners include Bermuda-based Golar LNG Ltd., which will operate the LNG vessels, and the Mexican company Grupo GGS, SA de CV. LNG will be supplied from the Asia-Pacific region and other sources worldwide, with Indonesia's Pertamina expected to be a key supplier.

KBR will provide initial engineering for the offloading terminal, regasification plant, desalination plant, and natural gas pipeline infrastructure. A joint venture of KBR and Techint then will follow with detailed engineering, procurement, construction, commissioning, and testing activities.

Currently, the consortium is proceeding with Mexico's required regulatory reviews and permits. Assuming approval and the development of a successful commercial structure and financing plan, construction could begin in 2003 with start-up operations in 2006.

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