Construction start set for Venezuelan LNG project

Mitsubishi Corp., Tokyo, Monday said construction is expected to start next year on the liquefied natural gas plant proposed for the coast of Venezuela.


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.

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