Chevron discontinues permitting for LNG terminal off Mexico

Chevron Corp. has discontinued permitting activities for a proposed LNG terminal off Baja California, a spokeswoman in Houston confirmed to OGJ on Apr. 3.

Apr 3rd, 2007

By OGJ editors
HOUSTON, Apr. 3 -- Chevron Corp. has discontinued permitting activities for a proposed LNG terminal off Baja California, a spokeswoman in Houston confirmed to OGJ on Apr. 3.

"Chevron recently requested that our permits be canceled with three Mexican federal permitting agencies: Regulatory Energy Commission, Communication and Transport Secretariat, and Secretariat of Environment and Natural Resources," said Margaret Cooper, Chevron corporate media advisor, global gas.

"The decision to cease work on this project is solely based on our business needs," Cooper said. "The project was developed with the intent that it could receive supply from Chevron's share of LNG output from the proposed Gorgon project. However, Chevron has successfully signed heads of agreements for the majority of that share to its customers in Asia, and the remaining share will go into Chevron's internal marketing system."

She referred to the Greater Gorgon gas fields off northwest Australia. The fields are linked with the $11 billion (Aus.) Greater Gorgon LNG project (OGJ Online, July 1, 2005, Newsletter).

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