LNG

The US Mexico-Pacific Ltd (MPL) LNG project company based in Houston has joined with LNG engineering firm Bechtel Inc. on developing a Mexican liquefaction and export facility on the Pacific Coast using US natural gas as the feed gas and processing technology from ConocoPhillips.

KBR Inc., the US energy and LNG engineering company said it was awarded a preliminary engineering and design contract by Mexico Pacific Ltd (MPL) for a US-led midscale LNG liquefaction and export project at Puerto Libertad on the Pacific coast of Mexico.

Under the terms of the contract, KBR will provide pre-front-end engineering and design work and cost estimates for the project.

This work will be performed by KBR utilizing the ConocoPhillips Optimized Cascade liquefaction technology, leveraging the midscale LNG joint development work previously announced by KBR.

With offices in Houston, Texas, MPL is a venture comprising DKRW Energy Sonora Holdings and Aecom Capital, a New York-based equity fund that invests in energy and infrastructure projects.

MPL has additional Mexican regulatory permits for 12 million tonnes per annum of output and proposes the initial construction of up to four mid-scale modular processing Trains, each producing 1 MTPA.

“We are excited to be a part of this Mexico Pacific Limited LNG project and to deliver innovative LNG technology solutions for our customers,” said Farhan Mujib, KBR President for Hydrocarbons Delivery Solutions.

“We believe midscale LNG projects have an important part to play in the global LNG market,” added Mujib.

The Puerto Libertad project site is contained within 1,100 coastal acres and the harbour depths are in excess of 20 metres and capable of accommodating the largest LNG carriers.

“We look forward to working with an LNG industry leader in KBR, and continuing our efforts to provide a world class project with best in class delivered pricing for our Asian buyers,” said Josh Loftus, President of MPL.

The KBR contract continues a broader competitive process with FEED expected to start in mid-2019.

The US Department of Energy’s Office of Fossil Energy approved MPL’s application in September 2018 to export 1.7 billion cubic feet per day via existing cross-border natural gas pipelines to be liquefied at the Puerto Libertad plant.

The pipelines include the Kinder Morgan Sierrita Gas Pipeline, which extends to the US-Mexico border near Sasabe in Arizona.

From MPL’s facility, which would be sited on the shore of the Gulf of California adjacent to Puerto Libertad, the LNG could be delivered to other markets in Mexico or to nations with a Free Trade Agreement with the US.

MPL President Loftus formerly worked with global accountants and consultants Ernst & Young where he was a business development manager in the energy sector in Houston.

He previously held several senior roles with the General Electric Company, including at GE Oil & Gas.

Loftus received a BA in economics and business administration from the University of Missouri and an MBA from the University of Notre Dame in Indiana.

Mexico Pacific Ltd, the developer of a liquefied natural gas export project in the state of Sonora on the Mexican Pacific Coast and backed by a US equity fund, has awarded a preliminary engineering contract to TechnipFMC.