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Apr 1, 2002 12:00 PM

Shell Gas & Power intends to develop a new liquefied natural gas (LNG) regasification terminal in Baja California, on the west coast of Mexico. The firm has contracted the supply of initially 7.5 million tonnes per annum of LNG, to be sourced from projects in the Asia-Pacific region.

The terminal will have a send-out capacity of up to 1.3 billion cubic feet per day and is expected to come onstream in 2006. Associated investment costs are estimated to be about $500 million. Shell intends to market gas to power plants and other potential customers in Baja California, and to sell surplus gas into the Southern California market.

Shell proposes to locate the terminal in Costa Azul, in the municipality of Ensenada.