Liquefied natural gas (LNG) importer Korea Gas (Kogas) has signed a memorandum of understanding (MoU) with the Mexican state government of Yucatan to build an LNG import terminal in Merida.
Gas pipelines are also planned to be laid under the MoU.
The terminal will be built in the port city of Progreso, while the gas pipelines would be laid between the terminal to Merida and Cancun cities.
It will supply natural gas to the southern part of the country along with the pipelines.
The LNG infrastructure project is expected to cost between $1bn and $1.5bn and prior to proceeding, Kogas proposes to conduct a feasibility study and assess the results.
Once initiated, the project is expected to make a profitable business model for LNG and will cover everything from the introduction of LNG to power station sales.
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By GlobalDataSouth Korean EPC companies, equipment suppliers and city gas suppliers will also receive new opportunities with the LNG terminal in place.
Kogas also has plans to sign similar MoUs with other state governments in Mexico.
Meanwhile, the company finalised an agreement with the Korea Development Bank to raise funds for its overseas midstream and downstream projects.
