Korea Gas Corp. signed a memorandum of understanding with state officials in Yucatán to build a liquified natural gas import terminal and gas pipelines.
The company, also known as KOGAS, announced in a press release that it will construct the terminal and pipelines to supply natural gas to the southern part of Mexico.
A feasibility study will be completed before deciding whether to proceed with the project.
The project is estimated to cost between US$1 billion and US$1.5 billion.
KOGAS was established in 1983 by the South Korean government and is the largest liquified natural gas-importing company in the world.