Progreso LNG Terminal

This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.

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Progreso LNG Terminal was a proposed LNG import terminal on Mexico's Yucatán Peninsula. There have been no development updates since 2016 and the project is presumed to be cancelled.

Location

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Project Details

• Owner: Kogas
• Location: Progreso, Yucatán, Mexico
• Coordinates: 21.28, -89.67 (approximate)
• Capacity:
• Status: Cancelled
• Type: Import
• Start Year: Unknown

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

Progreso LNG Terminal is a proposed LNG import terminal in Yucatán, Mexico. In 2016, the South Korean company Kogas signed a memorandum of understanding with the Yucatán state government to construct an LNG terminal at the port of Progreso. The project was expected to cost between $1 billion and $1.5 billion. Kogas stated that the imported gas would be used to supply southern Mexico.

The memorandum of understanding included gas pipelines that would connect the Progreso LNG Terminal to other cities on the Yucatán Peninsula, including Cancún. The next step in the process was for Kogas to conduct a feasibility study for the project before proceeding. Due to Mexico's growing demand for natural gas, Kogas expected the terminal project to be profitable and anticipated that it would be another key element of the company's expanding business infrastructure in the region.

However, there have been no development updates since 2016, and the Port of Progreso reported in January 2020 that it has insufficient space to accommodate an LNG terminal that would meet international standards, so the project is presumed to be cancelled.