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The Wall Street Journal: Mexico Takes Delivery Of First LNG Cargo From Shell Venture

By JEANINE PREZIOSO and BERND RADOWITZ
August 18, 2006; Page A6

HOUSTON — Mexico received its first shipment of liquefied natural gas, marking the commissioning phase of the nation’s first LNG regasification plant.

The cargo was delivered from Royal Dutch Shell PLC’s Bonny liquefaction plant in Nigeria to the Altamira terminal on Mexico’s northeastern coast, Shell has a 50% stake in the terminal, and Total SA and Mitsui & Co each have 25% shares. Subsequent LNG cargos will be delivered by Shell, which owns 75% of the terminal’s capacity rights, while Total has a 25% capacity stake, Shell said.

Mexico’s power authority, Comision Federal de Electricidad, is under contract to purchase 5.2 billion cubic meters, or 3.9 million tons, of regasified LNG annually from Altimira. Commercial deliveries to CFE are expected to begin in October.

Regasification terminals warm LNG back into a gaseous state for delivery via standard natural gas pipelines.

Brazil’s first LNG plant will be inaugurated Monday by state-run oil firm Petróleo Brasileiro SA, or Petrobras, and industrial gas company White Martins, Petrobras said Wednesday.

The $50 million plant in São Paulo state will liquefy a relatively small volume, 350,000 cubic meters a day. The output is slated for regions in western and southern Brazil not served by pipelines.

Write to Jeanine Prezioso at [email protected] and Bernd Radowitz at [email protected]

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