Coatzacoalcos LNG Terminal

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Coatzacoalcos LNG Terminal is a proposed liquefied natural gas (LNG) export terminal in Mexico.

Location

The terminal is proposed to be located in the port of Coatzacoalcos, Veracruz, Mexico.

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Project details

• Operator: CFEnergía, S.A. de C.V.
• Owner: CFEnergía, S.A. de C.V.
• Parent company: CFEnergía, S.A. de C.V.)
• Location: Coatzacoalcos, Veracruz, Mexico
• Coordinates: 18.119088, -94.406895 (approximate)
• Capacity: 600 million cubic feet per day
• Status: Proposed
• Type: Export
• Start year:
• Cost: 4 to 5 billion USD
• Financing:
• FID status: Pre-FID
• Associated infrastructure: Southeast Gateway Gas Pipeline

Background

In April 2022, Mexican president Andrés Manuel López Obrador announced plans to build an LNG export hub in the port of Coatzacoalcos, on the Gulf of Mexico in Veracruz state. The proposed terminal, with an estimated cost of US $4 to 5 billion, would liquefy natural gas for shipment to European markets.

In late November 2022, CFEnergía, the fuel marketing arm of Mexico's state-owned electrical utility CFE, issued a call for expressions of interest in developing the project; as of mid-2023, results had yet to be published. A June 2023 report from ICIS (Independent Commodity Intelligence Services) suggested that the terms established by CFE in its solicitation of interest could be challenging, as could an adequate supply of feedgas.

In December 2022, Oil & Gas Journal reported that CFE would use gas imported under contract via pipeline from the US to feed the plant.

Opposition

Numerous citizens' groups in Mexico, including Greenpeace, Nuestro Futuro, Alianza Mexicana Contra el Fracking, Conexiones Climáticas and Planeteando have called for the government to cancel all pending LNG export terminal projects in the country. The groups argue that LNG terminals create a host of serious negative impacts for local communities, including health effects from toxic chemicals such as benzine and nitrogen oxides, climate change associated with heightened levels of greenhouse gas emissions, devastation of marine life due to dredging, and the associated negative economic impacts on fisheries.