Salina Cruz FLNG project is part of the government’s GoM-Pacific Isthmus development master plan
LNG News Editor
The Mexican state-run fuel distribution company CFEnergía is seeking expressions of interest from companies to build and operate a floating liquefied natural gas export facility at the Pacific port of Salina Cruz and an affiliated gas pipeline.
The LNG export and pipeline projects are part of the Mexican government ‘s economic development plan for the Isthmus of Tehuantepec, the shortest distance between the nation’s two coastlines on the Gulf of Mexico and the Pacific Ocean.
State-led plan
CFEnergía is part of the state-owned utility CFE and trades more than 3.4 billion cubic feet per day of natural gas, almost half of the country's demand.
The subsidiary was created after Mexico's 2013 energy reforms were introduced to improve the supply of gas to CFE power plants.
The pipeline would have capacity of 500 million cubic feet per day and would link Chinameca in the Gulf of Mexico state of Veracruz to Salina Cruz in the state of Oaxaca on the Pacific side, supplying gas to the LNG export facility for exports of around 3 million tonnes per annum.
The project’s purpose is to supply the refinery, a cogeneration plant and the liquefaction plant in Salina Cruz, as well exporting natural gas to Central America and delivering natural gas mainly from the US to what is hoped to be a growing industrial base in the under-developed areas of southeast Mexico.
The Salina Cruz LNG facility would be Mexico's second on the Pacific Coast as US company Sempra Energy is transforming its existing Costa Azul import terminal into an export plant further north in the state of Baja California.
The scope of work for the Costa Azul facility is to add nameplate capacity of 3.25 to the existing regasification terminal using a compact and high efficiency mid-scale LNG design.
This addition will allow for natural gas liquefaction and LNG export capability at the Costa Azul facility, which has been operating as a regasification terminal since 2008.
The Costa Azul plane is one of Sempra LNG’s strategically located natural gas liquefaction infrastructure projects, including Cameron LNG in Louisiana. currently in development in North America.
The Salina Cruz plant will be subject to certain sales and contract conditions.
“CFE would sell gas procured via its extensive pipeline network to the FLNG operator under a 25-year take-or-pay contract,” explained the tender documents.
“The operator would have exclusive rights to market liquefaction capacity and LNG volumes produced from the project,” it added.
The gas infrastructure expansion is part of the government-backed Corredor Interoceánico del Istmo de Tehuantepec (CIIT), or Tehuantepec Isthmus Interoceanic Corridor.
The CIIT operating company would also have a majority stake in a joint venture to provide maritime services to the LNG export facility.
Ownership
CFEnergía stated that the operator would assume full ownership of the pipeline and FLNG projects and take on all associated risk in exchange for “security and certainty” in the supply of gas from the state company.
“CFE proposes to sell excess pipeline capacity as well as contributing to the economic development of the Tehuantepec Isthmus to strengthen Mexico’s energy security and sovereignty,” said the company.
The pipeline would also be designed to handle future interconnections with industrial areas along its route with capacities of between 50 and 70 million cubic feet per day.
