By the OGJ Online Staff
HOUSTON, Mar. 1 -- Marathon Oil Co. and partners have announced plans for a proposed LNG regasification and power generation project near Tijuana in Baja California, Mexico.
With a potential start-up in 2005, the complex would have the capacity to regasify up to 750 MMcfd of LNG for local use and export to southern California. Project partners are Indonesia's state-owned Pertamina, Golar LNG Ltd. of Bermuda, and Grupo GGS SA de CV of Mexico.
Others previously have proposed similar projects. CMS Energy Corp. and Sempra Energy plan to jointly develop a LNG receiving terminal north of Ensenada, Baja California, Mexico. Shell Gas & Power, a group of companies owned by Royal Dutch/Shell Group, and El Paso Global LNG, a subsidiary of El Paso Corp., said they would jointly develop a $300 million LNG regasification terminal at Altamira, Tamaulipas state, on Mexico's eastern coast (OGJ Online, Oct. 5, 2001).
Marathon said LNG for the Baja project would be supplied from various sources worldwide, with much of it coming from the Asia-Pacific region. Pertamina, the world's largest exporter of LNG, is expected to be a key supplier.
Marathon Pres. and CEO Clarence P. Cazalot, Jr., said, "This integrated natural gas project would apply proven LNG and power generation technology to safely and efficiently meet the growing need for clean energy."
In 1969, Marathon cofounded a joint venture with Phillips Petroleum Co. to export LNG from Alaska to utility companies in Japan, which represents the world's longest-running LNG export business.
Project details
The LNG regasification and associated power generation project would be developed on the Pacific coast, south of Tijuana. The complex would consist of an LNG marine terminal, an offloading terminal, onshore LNG regasification facilities, and pipeline infrastructure necessary to transport the natural gas to local and export markets.
In addition, a 400 Mw natural gas-fired power generation plant would be constructed.
In addition to supplying clean natural gas and electric power, the Baja project partners anticipate treating municipal wastewater for use by the complex as process water. The project also may include the addition of a 20 million gpd water desalinization facility.
Mexican Energy Sec. Ernesto Martens Rebolledo said, "The LNG projects in Baja California will be developed in collaboration with local communities, businesses, and units of the Mexican government. The region has enormous growth potential, and projects such as this one will play a very important role in its ability to access the energy needed to cleanly and efficiently fuel this growth."