Shell to build LNG plant in Mexico

Royal Dutch/Shell Group has signed an agreement to build a 500 million cubic feet per day (MMcfd) regasification facility on Mexico’s Gulf coast. The contract is to build, maintain and run a liquefied natural gas (LNG) terminal for the Mexican state utility Comision Federal de Electricidad (CFE) in Altamira on the Gulf coast for 15 years. The deal puts Shell at the forefront of the race to build Mexico’s first LNG terminal as foreign companies line up to provide Mexico and the USA additional supplies of gas and power. Shell’s Mexican unit Gas de Litoral bid a price of just under USD 0.18 per million British thermal units (MMBtu) for supplying the gas, within the maximum of USD 0.185/MMBtu specified in the contract. Shell also aims to build an LNG facility in Baja California on Mexico’s Pacific coast, as do Sempra Energy and Houston-based Marathon Oil Corp., to supply NW Mexico and US markets.

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