Marathon and BPMIGAS sign LNG MoU
Posted: 24 July 2003
Marathon Oil Corporation and its joint development partners in
the Tijuana Regional Energy Center project, Grupo GGS, S.A. de C.V.
and Golar LNG Limited, announced Marathon subsidiary GNBC VENTAS,
S. de R.L. de C.V. (GNBC) has signed a memorandum of understanding
(MOU) with BPMIGAS, the government regulator of Indonesian upstream
oil and gas activities, under which BPMIGAS would coordinate the
negotiation of liquefied natural gas (LNG) supply agreements to
provide GNBC with between three and six million metric tonnes of
LNG per year for a period of 20 years.
The LNG would be shipped to the proposed Tijuana Regional Energy
Center being developed by Marathon and its project partners near
Tijuana, Baja California, Mexico.
The MOU could lead to the execution of one or more definitive LNG
purchase and sale agreements.
LNG supply sources could include the existing liquefaction plant
at Bontang, East Kalimantan, or planned liquefaction projects in
Irian Jaya or Sulawesi and would be subject to the ongoing negotiations
with production sharing contract holders, with support and approval
of BPMIGAS.
"We are very pleased to have entered into this important MOU
with BPMIGAS," said John S. Hattenberger, senior vice president
of Marathon International Petroleum, Ltd.
"Indonesia has the potential to be a significant supplier
of LNG to the Tijuana Regional Energy Center and we look forward
to finalizing the necessary agreements that will serve as the basis
for a long-term, mutually beneficial relationship."
Announced in 2002, the proposed Tijuana Regional Energy Center
is an integrated complex that will consist of an LNG offloading
terminal and a 750 million cubic feet per day regasification plant,
a 1,200-megawatt power generation plant to supply regional electricity
needs, a 20-million gallon per day seawater desalination plant to
provide fresh water for the city of Tijuana, wastewater treatment
facilities to augment existing processing capacity of the San Antonio
de Los Buenos treatment plant, and related natural gas pipeline
infrastructure.
Currently, GNBC and its affiliates are proceeding with necessary
regulatory reviews and permits as required by federal and local
authorities in Mexico. Assuming timely regulatory approvals and
execution of successful commercial and financing plans, construction
of the Tijuana Regional Energy Center would begin in early 2004,
with start up expected in late 2006 or early 2007.
For more information see www.marathon.com.
Posted by Richard Price,
Editor Pipeline Magazine
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