DKRW Energy and El Paso Corporation Receive Key Permits for Sonora LNG Project

---

Researched by Industrial Info Resources (Sugar Land, Texas). DKRW Energy LLC (Houston, Texas) and El Paso Corporation (NYSE:EP) (Houston, Texas) have received three key environmental permits for their proposed joint venture liquefied natural gas (LNG) terminal and pipeline facilities in Sonora, Mexico. The permits obtained include environmental authorizations issued for by the Mexican Federal Ministry of the Environmental and Natural Resources (SEMARNAT) for the project’s terminal and pipelines and a land-use permit for the terminal issued by SEMARNAT and the National Forest Commission.

The Sonora Terminal and Pipeline project will encompass the construction of a new LNG receiving and regasification terminal to be constructed near Puerto Libertad, Mexico, with a re-gasification capacity of approximately 1 Bcf/d and a new 36” diameter natural gas pipeline that originates at the tail end of the LNG terminal and extends approximately 150 miles to the international border between the U.S. and Mexico. From the international border the pipeline will extend an additional 40 to 50 miles into the Tucson, Arizona area. DKRW will lead the development for the LNG receiving terminal portion of the Sonora project, and El Paso will head up the development and implementation of the pipeline portion.

DKRW and El Paso are currently marketing the natural gas capacity to perspective customers near the proposed LNG terminal and along the proposed pipeline route and expect to receive remaining permits from the government of Mexico in the summer of 2007. DKRW has completed the front-end engineering and design (FEED) studies and expects to select a Turn-Key E+P+C vendor for the LNG terminal in the third quarter of 2007. Construction is scheduled to begin on the facility in the first quarter of 2008. Completion for the LNG terminal and the pipeline is slated for some time in late 2010.

Industrial Info is currently tracking the progress of approximately $2.38 billion in proposed spending in LNG related projects in Mexico and an additional $23.128 billion in LNG related spending being proposed in the rest of North America.

View Project Report - 65000476 65000477

Industrial Info Resources (IIR) is a Marketing Information Service company that has been doing business for over 23 years. IIR is respected as the leader in providing comprehensive market intelligence pertaining to the industrial processing, heavy manufacturing, and energy-related industries throughout the world.