Marathon gets nod from CRE for Tijuana LNG storage facility

By OGJ editors

HOUSTON, May 12 -- Marathon Oil Corp. and its joint development partners, Grupo GGS SA de CV and Golar LNG Ltd., in the Tijuana Regional Energy Center project reported that Mexico's Energy Regulatory Commission (CRE) has awarded a natural gas storage permit to Marathon unit Gas Natural Baja California SRL de CV for the construction and operation of an LNG storage facility to be built near Tijuana, Baja California, Mexico.

Marathon's permit submission is the first of its kind accepted and approved by the Mexican government, the company said. "This gas storage permit gives Marathon and its partners the necessary federal approval to offload LNG, and to regasify LNG at the proposed complex to supply clean-burning natural gas to regional markets," Marathon added.

Announced in 2002, the proposed center will comprise an LNG offloading terminal, a 750 MMcfd regasification plant, a 1,200 Mw power generation plant, a 20 million gpd water desalination plant, wastewater treatment facilities, and related gas pipeline infrastructure (OGJ Online, Mar. 1, 2002).

The Marathon-led consortium is awaiting additional regulatory reviews and permits. Assuming these approvals are granted, the consortium aims to build the center starting in late 2003, with start up expected in 2006.

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