With the gas produced at Camisea (Peru)

Repsol YPF obtains a contract for the supply of gas to Mexico for the value of 15,000 million dollars

Press Release 19/09/2007 07:44
  • The company takes advantage of its position as exclusive trader of the gas produced in Peru to supply the Mexican Manzanillo plant.
  • The contract awarded in an international tender process includes the supply of 67.5 billion cubic meters (bcm), equivalent to more than double the annual consumption of Spain.
  • With a duration of 15 years, this represents an important leap forward in the strategic lines of growth in upstream and LNG, included in the company's Strategic Plan 2005-2009.

Repsol YPF has emerged as the winner of the international public tender for the supply of liquefied natural gas (LNG) to the natural gas terminal in the port of Manzanillo, on Mexico’s Pacific Coast. The Manzanillo plant will supply the electricity power stations of the west-central zone of Mexico.

The contract, with an estimated value of some 15,000 million dollars, includes the supply of LNG to the Mexican plant for a period of 15 years. The total volume of gas supplied in this period will be more than 67 bcm, equivalent to more than double the annual consumption of Spain.

The gas supplied will come from the Camisea liquefaction plant, in Southern Peru, of which Repsol YPF is the exclusive trader. The Camisea project, located in Pampa Melchorita (Peru), will be operational in 2010, a date when supply will begin, not only to Mexico, but to different markets on the Pacific Coast of America and to other Asian countries.

The signing of this contract represents an important step forward for Repsol YPF in one of the main lines of the company’s Strategic Plan 2005-2009, which includes growth in upstream and a greater presence in integrated LNG businesses. In addition, the strategic position of Camisea enables Repsol YPF to become one of the largest potential suppliers of liquefied natural gas of the Pacific Basin.

Camisea Project

At the end of July 2005, Repsol YPF signed the definitive agreement with the North American oil company Hunt Oil for the development of the gas deposits and the Camisea LNG plant. Said agreement contained the exclusive trade rights for Repsol YPF on 4 million tonnes of LNG per year. The agreement reached with Hunt Oil also included the acquisition by Repsol YPF of 20% of said liquefaction plant and a 10 % share of two exploration blocks of the Camisea deposit.