South Korea’s Kogas (Korea Gas Corporation) has signed a memorandum of understanding (MoU) with the Mexican state of Yucatan to construct an liquefied natural gas (LNG) terminal and gas pipelines that would be worth up to $1.5 billion in a package deal.
The LNG terminal will
be built in the port city of Progreso in Yucatan, and gas pipe lines will be installed between the terminal to cities such as Merida and Cancun to supply LNG gas. The project is expected to be worth in between $1 billion and $1.5 billion.
The MOU was signed August 9 by Kogas’ president and the governor of the state.
According to Reuters, Kogas intends to conduct a feasibility study looking into demand for gas in the region before making a decision to move forward with the project.