CMS Trunkline LNG Co. announced an agreement with Shell Oil’s Coral Energy Resources yesterday, paving the way for the CMS subsidiary to provide firm terminal service for 13 of Coral’s LNG cargoes in 2000 and 2001. Terms of the agreement were not disclosed. The first cargo is scheduled for delivery in January 2000.

The transaction proved Coral’s desire to be a major player in the liquefied natural gas (LNG) arena. However, Coral Energy would not discuss its LNG strategy for competitive reasons, Jimmy Fox, a company spokesman said.

The 13 cargoes would represent approximately 35 Bcf of gas. All of them are expected to arrive at CMS Trunkline LNG Co.’s Lake Charles, La., LNG complex. In addition to the terminal service provided, CMS Trunkline Gas Co. will provide natural gas pipeline transportation service to Coral for the gas.

Coral made its first LNG purchase earlier this year, buying 2.8 Bcf from Malaysia for delivery at Lake Charles (see Daily GPI July 12). The company said it is well positioned to become an LNG importer because of its market presence, pipeline infrastructure, risk managing abilities and credit. Since the July purchase, Coral has also announced an agreement for another cargo of LNG, this time from Australia, to be delivered at Lake Charles.

For CMS, the deal marks the continuation of heavy activity load at the Lakes Charles facility. Deliveries have grown in number from 17 in 1998 to 26 in 1999. Strong domestic gas prices, as well as increased LNG supply, have helped build the amount of LNG imported over the last year (see Daily GPI, Oct. 7). John Barnett, A CMS spokesman, said the company is still aggressively marketing the terminal and “definitely” hopes to expand the number of shipments next year.

For Craig Fishbeck, vice president of marketing for CMS Panhandle Pipe Line Cos., the deal demonstrates the value CMS is achieving through the Trunkline company, which it purchased from Duke in 1998. “Through the use of both Trunkline Gas Co. and Panhandle Eastern Pipe Line Co., we can deliver our customers’ regasified LNG into markets from the Gulf Coast to the Midwest,” he said.

©Copyright 1999 Intelligence Press Inc. All rights reserved.The preceding news report may not be republished or redistributed, in wholeor in part, in any form, without prior written consent of Intelligence Press,Inc.