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HOUSTON, Aug. 5, 2003 -- Shell Gas & Power on Tuesday announced that it has exchanged letters of understanding with Australia's Gorgon joint venture for the long-term supply of liquefied natural gas (LNG) to Shell's proposed LNG importation and regasification terminal in Baja California, West Mexico.
This could lead to volumes in the order of 2 million tons per annum over a period of 20 years. Shell is an equity partner in the Gorgon project.
Catherine Tanna, Shell Gas & Power director, Americas said: "We're delighted to have been able to identify a new supply of gas from a Shell- equity project to help meet Mexico's growing energy needs. The Gorgon project, with its massive reserves, is well placed to provide Mexico with a reliable, clean and economic source of LNG."
Shell is currently proposing to locate a new LNG import terminal in Costa Azul, 23 km north of the city of Ensenada on the west coast of Mexico. The terminal will have a capacity of 7.5 million tons of LNG per annum (equivalent to 1000 million standard cubic feet of gas a day) and is expected to begin operations in 2007. Terminal permitting activities, with the Mexican authorities, are well advanced. The target markets for the regasified LNG are power plants, industrial customers and utilities in the north west of Mexico and southern California, USA.
The Gorgon joint venture participants comprise ChevronTexaco (4/7th interest and operator), Shell (2/7th interest) and ExxonMobil (1/7th interest). Located offshore Western Australia, the development has certified proven hydrocarbon reserves of 12.9 trillion cubic feet (tcf), with the Greater Gorgon Area containing expected reserves in excess of 40 tcf.
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