Shell Gets Green Light for Baja LNG Termina

Shell Mexico revealed that its proposed liquefied natural gas (LNG) regasification terminal in Baja California has been granted an environmental permit by the Mexican authority SEMARNAT.

The permit, granted on April 8, 2003, is a significant step forward for the project, which aims to provide a new supply of gas to meet Mexico's growing energy needs. The new terminal, located in Costa Azul, 23 km north of the city of Ensenada on the west coast of Mexico, will have a capacity of 7.5 million tons per annum and is expected to begin operations in 2007. Regasified LNG will be sent to power plants and industrial customers in the north west of Mexico, with surplus gas marketed into southern California.

Peter Kidd, Shell's Country Chairman in Mexico said: "We are delighted to have been granted environmental approval for the terminal and to be working with Mexico, and especially with Baja California, to realize this important project. A new terminal will help stimulate the country's economy by providing a reliable and clean source of energy. We remain committed to continuing consultation with the local community as we move forward."

Shell has undertaken a significant program of community engagement since first expressing its interest in developing a new terminal in Baja. The consultation process has identified many issues of importance to local stakeholders, and enabled the company to accommodate them in the project design through its Environmental, Social and Health Impact Assessment.

Shell will continue to undertake the additional studies necessary to obtain permit approval for the associated gas pipeline project.