General – Termination Gas Project
Pemex and U.S. liquefied natural gas (LNG) company New Fortress Energy have terminated a deal to develop potentially the country’s first deepwater natural gas project that was signed a year ago.
Now Pemex wants to continue with the development of the Lakach gas field in the Gulf of Mexico and is in talks with other companies, the two sources said, without naming the companies.
The Lakach field, some 90 kilometers (56 miles) from the Gulf port of Veracruz, holds an estimated 900 billion cubic feet of natural gas, but rising costs and disagreements over how to develop it have impeded the venture.
Last month, Pemex decided to halt the project after NFE wanted to impose conditions Mexican officials considered unacceptable, including NFE buying the natural gas too cheaply from Pemex. Lakach had become too expensive for NFE, and observed that it would be challenging for Pemex to move ahead with the project.
