Mitsubishi Corp., Tokyo, Monday said it expects construction to start next year on the LNG plant proposed for the coast of Venezuela.
Mitsubishi, Royal Dutch/Shell Group, and ExxonMobil Corp., signed a memorandum of understanding in April with the Venezuelan state oil firm Petroleos de Venezuela to develop the $2 billion project (OGJ, Apr. 3, 2000, p. 32).
Known as the Paria North LNG project, the facility will have a production capacity of 4 million tonnes/year. Production is scheduled to begin in 2005. It will use gas from offshore fields north of the Paria Peninsula on Venezuela's coast, a Mitsubishi spokesman said.
Shell will hold a 30% interest in the project; ExxonMobil, 29%; and Mitsubishi, 8%. The remaining 33% will be held by PDVSA.
A previous plan had called for a $5 billion investment to create a facility that could produce 6 million tonnes/year but was deemed uneconomic.