Mexico: Korean energy company will build LNG terminal in Yucatan

Mexico: Korean energy company will build LNG terminal in Yucatan

The Korea Gas Corporation (Kogas) signed a memorandum of understanding (MOU) with the state government of Yucatan in Mexico. The purpose of the MOU is to build an LNG terminal at the Port of Progreso located in Merida, the capital of Yucatan, and lay gas pipes for natural gas supply to and from Merida and Cancun, and also neighboring states Campeche and Quintana Roo.

Kogas is going to decide on the initiation of the project after conducting a feasibility study. This initiative, once initiated, is expected to make a profitable LNG business model covering all the way from the introduction of LNG to sale to power stations, companies, hotels and the like as end consumers.

In addition, the company is planning to sign similar MOUs with many other state governments in Mexico as local demands for natural gas supply are on the increase in the regions. The project in Yucatan is expected to cost US$1 billion to US$1.5 billion and bring opportunities to South Korean EPC companies, equipment suppliers and city gas suppliers.

“It will be a Yucatecan plant, as it will hire local labor, both for construction and for operation. We have eight years in Mexico, we have a facility in Manzanillo, Colima, and this new plant will become the second in this country,” said senior manager of Kogas Moon Hyun Kim.

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