Shell takes on Mexico project

Shell has signed an agreement to develop and build a regasification terminal for liquefied natural gas for ERG Power in Sicily. The plant, with a capacity of around 8billion m3 of gas per year, will cost some E400million.

The proposed site for the terminal is the Priolo/Augusta/Melilli industrial area, in the Syracuse province. Subject to planning approval, construction is scheduled to begin in 2007, with the terminal coming on-stream in 2010.

Italy is the third-largest gas market in Europe, and the new terminal will provide an alternative source of gas for Italy.

‘The envisaged LNG terminal is a further milestone in delivering on our global LNG and European gas strategies,’ says Michael O’Callaghan, chief executive of Shell Energy Europe. ‘We started marketing activities in Italy last year and this project is proof of our serious and long-term commitment to the Italian gas market.’