By OGJ editors
HOUSTON, May 25 -- The Houston-based DKRW Energy LLC Tuesday announced plans to build an LNG terminal at Puerto Libertad in the state of Sonora, Mexico, on the Gulf of California.
DKRW's subsidiary, Sonora Pacific LNG, has signed a cooperation agreement with the government of Sonora tentatively authorizing the purchase of uninhabited land that the state already has designated for industrial purposes.
Construction of a 1.3 bcfd regasification and storage terminal is slated for mid-2005 with start-up expected in mid-2008.
The proposed project includes pipelines to distribute gas throughout Sonora and an export pipeline through Nogales to interconnect with an El Paso Pipeline system east of Tucson to serve the Arizona and California natural gas markets. DKRW still is negotiating with El Paso Pipeline.
The proposed LNG facility also could provide gas for the state of Sinaloa, said Tom White, DKRW Energy partner and Sonora Pacific LNG managing partner. White was US Secretary of Army in 2001-02, and he joined DKRW in January.
The company has yet to secure financing arrangements and negotiate contracts with gas suppliers, White said. DKRW also has yet to secure necessary permits from Mexico's federal authorities.
DKRW was founded in January 2002 as an energy infrastructure development company, and its business lines are LNG, coal-to-liquids technology, and wind power.
In addition to White, DKRW principals are Jon C. Doyle, formerly with Enron Corp. global renewable energy development; Robert C. Kelly, former president of Enron Cogeneration Co., and H. David Ramm, former president of Enron Wind Corp.
