Mexico has revealed intentions to invest up to $5 billion in an LNG hub on its Caribbean coast in order to capitalise on Europe’s rising energy demand, local news media have reported. President Andrés Manuel López Obrador personally made this announcement during a press conference on Tuesday.
He stated that the facility would be situated in the state of Veracruz’s port of Coatzacoalcos, adding that: “We’re about to promote private sector involvement; it’s going to be an investment of between $4bn and $5bn.” Germany, which is currently moving quickly to create a network of LNG import hubs to cover the gap left by the termination of Russian gas shipments, is working with Mexico and its development team to manage the project.
López Obrador spoke with German President Frank-Walter Steinmeier on enhancing bilateral cooperation on the expanding LNG market during their recent state visit.
The North Sea port of Wilhelmshaven is now building a facility, and it is hoped that it will be ready to take LNG imports before the winter. When finished, it will have the capacity to handle 7.5 billion cubic metres of natural gas annually, which is around 8.5 percent of Germany’s present needs.
In April, López Obrador suggested building an LNG facility in Coatzacoalcos and two more in Salina Cruz, Oaxaca State, and Topolobampo, Sinaloa State. To advance its LNG goals, Mexico has already reached deals with foreign energy corporations.
Sempra Infrastructure, based in California, and the Federal Electricity Commission of Mexico announced an agreement on July 21 to jointly develop the Vista Pacifico LNG project in Topolobampo and an export terminal at Salina Cruz.
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