Mitsui Wins Contract to Develop Manzanillo LNG Project

Japanese trading conglomerate Mitsui has obtained an award from the Mexican Federal Electricity Commission in regard to the concession rights for the construction and operation of a liquefied natural gas receiving terminal in Manzanillo City, Mexico, together with project partners, Korea Gas and Samsung.

The project company established by Mitsui, Korea Gas and Samsung, with equity participation at 37.5%, 25% and 37.5%, respectively, will construct a liquefied natural gas (LNG) terminal which has storage and regasification facilities in Manzanillo City, located on the Pacific coast of Mexico.

The company will manage and operate the facilities for 20 years based on a service contract with the Federal Electricity Commission (CFE).

Mitsui noted that the total project cost will be approximately $900 million. The regasified gas volume of 14 million cubic meters per day will be delivered to CFE after commercial start-up, which is scheduled for mid-2011.