Mexico gives green light for Shell-Sempra LNG terminal

The Mexican government has given the Royal Dutch/Shell Group and Sempra Energy JV approval to construct a US$600 million LNG terminal in Baja California. The facility will be used to process gas from Sakhalin for Mexican consumption and for export to California.

The project is being opposed by environmental groups.

According to the website of Mexico’s Regulatory Energy Commission, “The group led by Shell plans to build a re-gasification plant in Baja California on the Mexican Pacific Coast to treat natural gas brought in liquid tanks from the Shell-led Sakhalin project in Russia.”

“[We have] granted the Shell-led group a permit to stock natural gas in Baja California. The plant, scheduled for completion in 2007, would process about 1 billion cubic feet of gas a day. More than half of the terminal's output will be used in Mexico, while the rest will be shipped to California,” it added.

In a brief statement Shell’s Mexican unit President Peter Kidd said, “I understand all the permits are in order [and Shell] will decide when to start construction in a relatively near future.” He did not elaborate further.

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