Repsol YPF to build a regasification terminal in Mexico
The Mexican authorities have awarded Repsol YPF land for the construction of a regasification plant in Port Lázaro Cárdenas, on the Pacific coast of Mexico.
The Lázaro Cárdenas LNG (liquefied natural gas) terminal will be the first to be sited in West Mexico, and will play an essential role in energy development on that Pacific coast since gas will be supplied from this facility to the gas markets in the area.
The Lázaro Cárdenas Integral Port Administration (API) granted Repsol YPF the land on which the terminal will be built for $10.1 million. The plant will have an initial capacity of over 4 billion cubic metres (bcm) per annum, with a revamp potential of up to 10 bcm per annum. The initial investment is budgeted at around $350 million dollars and the facility is expected to go on stream in 2008.
Port Lázaro Cárdenas is one of Mexicos largest industrial ports, and the only port on the Pacific Coast with access facilities to the national gas grid, making it an optimal location for a terminal of this kind.
Winning this project is core to Repsol YPFs strategy for profitable growth in the LNG business, and marks the companys entry in the American Pacific area, thus complementing its current activities in the Atlantic Basin through Atlantic LNG and the sale of LNG on the East Coast of the U.S.A.