Eric Watkins
Senior Correspondent
LOS ANGELES, Mar. 11 -- Mexico's Federal Electricity Commission (CFE) has awarded a $900 million contract for the construction and operation of an LNG receiving terminal on Mexico's Pacific coast to Terminal KMS de GNL, a consortium of Mitsui & Co. 37.5%, Samsung Corp. 37.5%, and Korea Gas Corp. 25%.
The terminal, to be built at the Port of Manzanillo, will be comprised of two LNG tanks, a regasification facility, and a pier. Commercial start-up is scheduled for midyear 2011.
The company will manage and operate the facilities for 20 years based on a service contract with CFE. The partners said they will charge a regasification fee of 40¢/Mcf to process the gas.
After starting at 90 Mcfd in 2011, supply to the facility will be scaled up to 500 Mcfd by 2015 in increments of 180 Mcfd, 360 Mcfd, and 400 Mcfd. The gas from Manzanillo will feed the 3 Gw of capacity CFE intends to install in the region.
CFE earlier awarded Repsol Comercializadora de Gas a 15-year, $15 billion contract in September 2007 to supply the Manzanillo terminal with Peruvian gas (OGJ, Mar. 10, 2008, Newsletter.)
Contact Eric Watkins at [email protected].
