Marathon Awards KBR Baja California LNG Project

Marathon Oil Company and the joint development partners in the Baja California (Mexico) Regional Energy Center project announced the selection of KBR (Kellogg Brown & Root) and Techint S. A. de C. V. as engineering, procurement and construction (EPC) contractors for the project.

Announced earlier this year, the Baja California Regional Energy Center will be located near Tijuana, Mexico, and is an integrated complex planned to consist of a liquefied natural gas (LNG) offloading terminal and regasification plant, a 1,200-megawatt power generation plant, a 20 million gallon per day water desalination plant, wastewater treatment facilities and natural gas pipeline infrastructure.

KBR will initially provide engineering for the offloading terminal, regasification plant, desalination plant and natural gas pipeline infrastructure. This will be followed by detailed engineering, procurement, construction, commissioning and testing activities executed by a joint venture of KBR and Techint.

The Baja California Regional Energy Center will be a state of the art complex designed to meet the region's expected growth in the coming years. The Regional Energy Center is being designed to provide the clean, efficient and readily available energy and water needed to fuel this growth, while also improving local infrastructure capacities that will protect the environment and enhance the quality of life of the region's residents.

Currently, the Marathon-led consortium is proceeding with regulatory reviews and permits as required by federal authorities in Mexico. Assuming regulatory approval and the development of a successful commercial structure and financing plan, construction of the facilities is scheduled to begin in 2003 with start-up expected in 2006.

Marathon Oil is pursuing an integrated natural gas strategy designed to commercialize stranded natural gas and create sustainable value growth through innovative energy solutions and unique partnerships. In 1969, Marathon co-founded a joint venture to export LNG from Alaska to utility companies in Japan. This joint venture represents the world's longest-running LNG export business to Asia and North America's first, and only, LNG export operation.

Other Baja California Regional Energy Center project partners include:

  • Grupo GGS, S.A. de C.V., a Mexican company that has participated in the development of seaports, airports, power generation facilities and other projects and is currently involved in the development of oil and natural gas projects.
  • Golar LNG Limited, a Bermuda-based holding company that operates 10 LNG vessels of which six are under direct ownership. Golar will also take delivery of four new-build vessels over the period 2003 to 2004. Golar is developing its position as a leading independent owner of ocean-based LNG transportation.