Pemex to invest US$130 million in new LPG storage in salt cave; ready by 2016

Mexican state oil company Pemex plans to complete construction of a new underground storage for LPG at a cost of US$130 Million which will be located in Coatzacoalcos, Veracruz, the company has said.

It will be the first project in Mexico and all of Latin America which involves storing LPG in a salt cave, the company said in a statement issued in December.

It added that such storages, which make use of salt caves, are common elsewhere in the world and not just for LPG but also for crude oil, natural gas, gasoline, diesel and even hydrogen.

The new storage will help to assure supplies for domestic consumption and also to make purchases for bigger volumes at better prices. The news storage will have capacity for an equivalent of 1.8 million barrels, it added.