Pemex to build LNG project in Baja California region

State oil Mexican company Pemex, which controls the fuels and energy market in Mexico, said on February 19 it has signed a memorandum of understanding with IEnova and Sempra LNG to carry out a liquefied natural gas (LNG) project in its terminal Energia Costa Azul located in Baja California.

The agreement will make it possible for each partner to decide the extent of its desired participation in this project where Pemex would become a client and an investor, Pemex said.

An LNG terminal would allow Pemex to take advantage of price differentials worldwide and to increase exports. The terminal would be the first in Mexico to compress gas for export.

“The project’s development will allow supporting the Mexican commercial activity through the increase of exports and the promotion of the commercial relations of the country abroad,” the statement said.