Qatar to supply Mexico with gas

SETTING SAIL: Qatar will ship gas to Mexico from 2009.

Qatargas said on Sunday it will supply 700,000 tonnes of liquefied natural gas (LNG) a year to Mexico's Altamira Terminal from 2009 onwards.

Under the agreement, the $12 billion Qatargas II project, one of the world's largest LNG export schemes and a joint venture between Qatar Petroleum and ExxonMobil, will supply LNG to Total Gas & Power in Mexico.

Qatargas said the LNG will be supplied into the Altamira Terminal located in Gulf of Mexico and will be used in national power generation at the country's Altamira V power plant in Tampico and at some other power facilities.

"We are pleased with this exciting market development. Mexico represents a new market for Qatari LNG and further demonstrates our commitment to diversity of markets for our energy," Faisal Al Suwaidi, chairman and CEO of Qatargas, said in a statement.

Mexico will be supplied by train 5 - the industry term for an LNG production line - which is expected to come on stream in 2009.

Train 5 is expected to export gas to the North American and European markets. It is 65% owned by Qatar Petroleum, while Exxon holds 18.3% and Total owns 16.7%.

Train 4 is scheduled to start in June next year and will supply fuel to the UK.

Each train will have annual capacity to produce 7.8 million tonnes of LNG.

Qatar plans to boost its LNG output to 77 million tonnes in 2010 from around 31 million tonnes this year as it looks to capitalise from its massive North Field, the largest reservoir of pure gas in the world.

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