Houston-based Gulf United Energy is participating in a liquefied natural gas (LNG) regasification terminal project on Mexico’s Yucatan Peninsula, the company said earlier this week. Gulf United subsidiary Fermaca LNG de Cancun, S.A. de C.V., through its 50% interest in SIIT Energy, S.A. de C.V., has a stake in the 300-500 MMcf/d project.

The terminal, which would be completed in 2011, would serve present and future power generation projects in the region as well as the local gas market, Gulf United said, which added that it is in discussion with potential LNG suppliers.

“We continue to be encouraged by the relevant government authorities as they stress the importance of having infrastructure of this nature on the Yucatan Peninsula considering that Mexico is projected to be a net importer of natural gas by 2015,” the company said.

The terminal project is expected to cost US$500 million. Gulf United said a “significant portion” of the financing has been secured with additional funds to come from a combination of equity and project-based debt financing.

Gulf United also is involved in the development of a pipeline that could accommodate up to 500 MMcf/d, moving gas from the existing Mayacan pipeline, owned by Gas de France to serve power generation and industrial demand in the cities of Valladolid, Cancun and Nizuc until completion of the LNG regasification facility.

“We continue to work with our Mexican partners to develop our Yucatan Peninsula projects,” said Gulf United President Don Wilson. “Both projects are very important to the future of the region, and we expect them to provide Gulf United with a substantial asset base and meaningful cash flow in the future.”

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