06-01-03 Marathon Oil and its partners announced the selection of Houston-based KBR -- also known as Kellogg Brown & Root -- and Techint of Mexico as engineering, procurement and construction contractors for a major energy project in Mexico.
Announced earlier this year, the Baja California Regional Energy Centre, to be located near Tijuana, Mexico, is an integrated complex that will include a LNG offloading terminal and regasification plant, a 1,200-MW power generation plant, a 20-mm gallon-per-day water desalination plant, wastewater treatment facilities and natural gas pipeline infrastructure.

KBR will initially provide engineering for the offloading terminal, regasification plant, desalination plant and natural gas pipeline infrastructure. This will be followed by detailed engineering, procurement, construction, commissioning and testing activities executed by a joint venture of KBR and Techint.
The energy centre is designed to meet the region's expected growth, according to the partners. It will provide clean and efficient energy and water to fuel this growth, the partners say.

Currently, the Marathon-led consortium is proceeding with regulatory reviews and permits as required by federal authorities in Mexico. Assuming regulatory approval and the development of a successful commercial structure and financing plan, construction of the facilities is scheduled to begin in 2003, with start-up expected in 2006.