Shell, El Paso plan LNG terminal for Mexico's East Coast

Shell Gas & Power, a group of companies owned by Royal Dutch/Shell Group, and El Paso Global LNG, a subsidiary of El Paso Corp., will jointly develop a liquefied natural gas regasification terminal at Altamira, Tamaulipas state, on Mexico's east coast.


By the OGJ Online Staff

HOUSTON, June 28 -- Shell Gas & Power, a group of companies owned by Royal Dutch/Shell Group, and El Paso Global LNG, a subsidiary of El Paso Corp., will jointly develop a liquefied natural gas regasification terminal at Altamira, Tamaulipas state, on Mexico's east coast.

The $300 million terminal will target fast growing gas demand in northeastern Mexico, largely driven by electric power demand growth. It will also help meet overall Mexican demand, said the companies.

Joint development allows the project to be built faster and cheaper, they said.

Shell and El Paso did not reveal initial capacity of the terminal, saying only that it will be sufficient to meet demand in Altamira's immediate area. They said it would be expandable to 1.3 bcfd.

The companies said their 50:50 joint venture has acquired rights to land at the Altamira port and has begun design studies.

The regasification terminal is planned to begin LNG imports in the first half of 2004. The Shell-El Paso project will market gas directly to Petroleos Mexicanos, the Mexican state energy company, industrial users, and power producers.

Mexico's Energy Sec. Ernesto Martens Rebolledo said the project fits with the country's energy policy. "The Shell and El Paso terminal is one of a set of projects being evaluated by the Mexican authorities for the country's LNG supply."

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