Coatzacoalcos LNG Terminal

From Global Energy Monitor
This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.
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Coatzacoalcos LNG Terminal is a proposed liquefied natural gas (LNG) export terminal in Mexico.[1][2][3]

Location

The terminal is proposed to be located in the port of Coatzacoalcos, Veracruz, Mexico.[1][4]

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Project details

  • Operator: CFEnergía, S.A. de C.V.[1]
  • Owner: CFEnergía, S.A. de C.V.[1]
  • Parent company: CFEnergía, S.A. de C.V.)[1]
  • Location: Coatzacoalcos, Veracruz, Mexico[1]
  • Coordinates: 18.119088, -94.406895 (approximate)[1][4]
  • Capacity: 600 million cubic feet per day[1]
  • Status: Proposed[1]
  • Type: Export[3]
  • Start year:
  • Cost: 4 to 5 billion USD[3]
  • Financing:
  • FID status: Pre-FID[5]
  • Associated infrastructure: Southeast Gateway Gas Pipeline[3]

Background

In April 2022, Mexican president Andrés Manuel López Obrador announced plans to build an LNG export hub in the port of Coatzacoalcos, on the Gulf of Mexico in Veracruz state.[6][7] The proposed terminal, with an estimated cost of US $4 to 5 billion, would liquefy natural gas for shipment to European markets.[3]

In late November 2022, CFEnergía, the fuel marketing arm of Mexico's state-owned electrical utility CFE, issued a call for expressions of interest in developing the project[1]; as of mid-2023, results had yet to be published.[5] A June 2023 report from ICIS (Independent Commodity Intelligence Services) suggested that the terms established by CFE in its solicitation of interest could be challenging, as could an adequate supply of feedgas.[5]

In December 2022, Oil & Gas Journal reported that CFE would use gas imported from the US via TC Energy's Southeast Gateway Gas Pipeline to feed the plant.[8]

In February 2024, the mayor of Coatzacoalcos described the export terminal as a US$5 billion investment that would help revitalize the region's economy, and predicted that CFE would soon make an announcement confirming plans for the project.[9] However, as of September 2024, there had been little further news about the proposed terminal.

Opposition

Numerous citizens' groups in Mexico, including Greenpeace, Nuestro Futuro, Alianza Mexicana Contra el Fracking, Conexiones Climáticas and Planeteando have called for the government to cancel all pending LNG export terminal projects in the country. The groups argue that LNG terminals create a host of serious negative impacts for local communities, including health effects from toxic chemicals such as benzine and nitrogen oxides, climate change associated with heightened levels of greenhouse gas emissions, devastation of marine life due to dredging, and the associated negative economic impacts on fisheries.[10]

Articles and resources

References

  1. 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 "Call for Expressions of Interest for the Development of Infrastructure for Natural Gas Liquefaction and Marketing of Liquefied Natural Gas in the Port of Coatzacoalcos, Veracruz, Mexico" (PDF). CFEnergía, S.A. de C.V. November 30, 2022.{{cite web}}: CS1 maint: url-status (link)
  2. "CFEnergia convoca a participar en la construcción de una terminal de licuefacción de gas natural en Coatzacoalcos, Veracruz". PV Magazine Mexico. December 2, 2022.{{cite web}}: CS1 maint: url-status (link)
  3. 3.0 3.1 3.2 3.3 3.4 "Mexico plans $4-$5 bln LNG hub at Gulf port, president says". Reuters. September 27, 2022.
  4. 4.0 4.1 "Logistics Terminal Pajaritos · Carretera Coatzacoalcos Villahermosa Km. 7.5, Complejo Petroquímico Pajaritos, 96400 Coatzacoalcos, Ver., Mexico". Google Maps. Retrieved 2023-07-10.{{cite web}}: CS1 maint: url-status (link)
  5. 5.0 5.1 5.2 De La Rosa, Claudia (June 2, 2023). "LNG developers in Mexico face long road ahead". ICIS.
  6. "Mexico Likely To Further Expand LNG Export Capacity". Fitch Solutions. October 10, 2022.
  7. "Mexico plans three gas liquefaction facilities, eyes tender process". Reuters. April 1, 2022.
  8. Smith, Christopher E. (2022-12-05). "CFEnergia considering building 4.5-million tpy Gulf Coast LNG plant". Oil & Gas Journal. Retrieved 2024-02-22.
  9. "CFE invertiría hasta nueve mmdp en Coatza para gasoducto y planta de licuefacción". Más Noticias. 2024-02-22.{{cite web}}: CS1 maint: url-status (link)
  10. "El alto de EEUU a proyectos de Gas Natural Licuado evidencia que el plan de México para exportarlo es peligroso y debe ser cancelado". Greenpeace México. 2024-01-26.{{cite web}}: CS1 maint: url-status (link)