Chevron Gets LNG Permit in Mexico
latimes.com
From Bloomberg News
ChevronTexaco Corp., the second-largest U.S. oil company, said Thursday that it had received a permit from Mexico to construct a liquefied natural -gas import terminal off the coast of Baja California to capitalize on growing demand for the fuel.
The proposed terminal would be able to process 700 million cubic feet of gas a day. It would be located 8 miles offshore from Tijuana — within reach of gas markets in Mexico and Southern California.
"What this means is we are now fully federally permitted," ChevronTexaco spokeswoman Nicole Hodgson said. "The next step is to continue work with the local permits."
The Regulatory Energy Commission of Mexico awarded a permit for the project, and the country's Communication and Transport Secretariat declared ChevronTexaco winner of the public licensing round to construct and operate the terminal, the San Ramon, Calif.-based company said.
"We are looking in the Asia-Pacific region" for LNG to supply the terminal, Hodgson said.
LNG is gas that's been compressed and cooled to liquid form so it can be transported on refrigerated ships. The LNG is warmed to gaseous state before being injected into pipelines.
ChevronTexaco in August 2003 signed a memorandum of understanding to bring LNG from its proposed $8.6-billion Gorgon liquefaction joint venture in Australia to the Mexican terminal.
Gorgon is a joint venture with Europe's Royal Dutch/Shell Group and Irving, Texas-based Exxon Mobil Corp., the largest U.S. oil company. ChevronTexaco would be the operator with a 57% stake. Shell would own 29% and Exxon Mobil 14%.
Shares of ChevronTexaco rose 85 cents to $51.73 on the New York Stock Exchange before the announcement. |
