Supply for Manzanillo LNG No Longer To Be Tied to Crude Oil Pricing
Posted on Apr 26, 2006 in Canada & Mexico, Regas Terminals & Capacity | Comments Off on Supply for Manzanillo LNG No Longer To Be Tied to Crude Oil Pricing
As it plans to issue tenders for its proposed Manzanillo LNG facility in May or June, Mexico’s state-owned power company, Comision Federal de Electricidad (CFE), says it will no longer opt for a hybrid pricing index based on an average of two crude oil and gas indices. CFE says it is dropping plans to purchase LNG at prices linked to crude oil prices because of their volatility. According to Platts LNG Daily, the issuance of tenders for the construction and supply of the planned 500 MMcf/d terminal, initially expected in August 2005, has been postponed due to delays caused by regulations governing Mexico’s state industries. [Subscription required]