Regional LNG: Sempra awards EPC contract for Mexico LNG project

US firm Sempra LNG announced on Monday it had awarded US$670 million in engineering, procurement and construction contract for the company's Baja California, Mexico, liquefied natural gas (LNG) receipt terminal project.

A consortium comprised of Techint SA de CV of Mexico, Black & Veatch of Kansas City, Mo., Mitsubishi Heavy Industries of Tokyo and Vinci Construction Grands Projects of France (BMVT) was awarded the approximately $500 million EPC contract for the Energia Costa Azul receipt terminal located 14 miles north of Ensenada, Mexico. A joint venture involving the Costain Group PLC, an international construction and civil engineering company headquartered in London, and China Harbour, one of China's largest construction groups, won the construction contract for the project's $170 million breakwater.

When completed in 2008, the Mexico project will have the capacity to process 1 billion cubic feet (Bcf) of natural gas per day. Work on the access road to the project site is nearing completion. Major construction on the receipt terminal is expected to commence soon.

Sempra has signed long-term LNG supply contract with BP-operated Tangguh LNG, in which the latter will supply up to 3.7 million tons of LNG per annum to the former starting 2008-2009. (alex)