Import

Shell Gas & Power and El Paso Global LNG announced plans to build Mexico’s first LNG import terminal, a 1.3 Bcf/d facility in Altamira, Tamaulipas on Mexico’s northeastern coastline. Initial investment costs are estimated to be up to $300 million, and the regasification terminal is expected to start importation of LNG in the first half of 2004.

Acknowledging that a combination of unexpected generator outagesand sustained hot weather could create the threat of power outagesthis summer, the California Independent System Operator (Cal-ISO)launched a new alert system for gaining enough voluntaryconservation by businesses and mass consumers to ride out thepeak-demand periods. Calling it “Power Watch 2000,” Cal-ISOPresident/CEO Terry Winter said he anticipates that both short- andlong-term the state can use market-based programs to addresspotential shortfalls.

Portland Natural Gas Transmission System has become the secondmajor import pipeline project being delayed well into the winterfrom expected Nov. 1 start up. The pipeline said the 152 MMcf/d ofCanadian gas scheduled to flow to New England markets this fallprobably will not enter the pipe until sometime in January at theearliest.