Comision Federal de Electricidad, Mexico’s state utility, will take delivery of 18 spot cargoes of liquefied natural gas cargoes over the next 18 months from Trafigura AG.
The utility paid an average price of $15.84 per million British thermal units for the cargoes, which will be sent to the Manzanillo terminal on the country’s west coast, CFE said in an e-mailed statement yesterday. The first shipment will reach the terminal on July 19, with the average volume of each cargo at 110 million cubic feet per day.
Shipments for 2013 will be shared between Pemex Gas y Petroquimica Basica, or PGPB, and CFE. Cargoes delivered next year will be for PGPB’s use, according to CFE. The LNG will be regasified and sent into the Manzanillo-Guadalajara gas pipeline
The price of LNG spot cargoes for delivery to Northeast Asia during the next four to eight weeks dropped to $14.30 per million Btu, Energy Intelligence Group said on the website of its World Gas Intelligence publication May 8. The price in Southwest Europe was $11.75 per million Btu, according to WGI.
CFE last week closed its tender to buy 30 LNG spot cargoes for delivery to Manzanillo. Eight companies participated in the bidding process, said CFE.
Latin America’s LNG import capacity will increase to 49.2 million metric tons a year in 2020 from 30 million tons a year in 2013, Anton Safronov, Total SA’s LNG origination director, said May 9 in Singapore.
Manzanillo, with a capacity of 3.8 million tons a year, started operations in May 2012, according to the website of Samsung C&T Corp. Korea Gas Corp., the world’s biggest LNG buyer, owns 25 percent of the terminal and Mitsui & Co. and Samsung C&T split the remaining 75 percent, according to the website.
Mexico City-based CFE has two contracts with Repsol SA for a combined annual LNG supply of 3.18 million tons, according to data compiled by Bloomberg.