UPDATE 1-Mexico slaps force majeure on hurricane-hit LNG terminal -source

Mon Sep 23, 2013 3:55pm EDT
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By Oleg Vukmanovic and David Alire Garcia

LONDON/MEXICO CITY, Sept 23 (Reuters) - Mexican state power utility CFE has declared force majeure on imports into the Manzanillo liquefied natural gas (LNG) terminal after Hurricane Manuel damaged a pipeline, a source with knowledge of the incident said on Monday.

CFE spokesman Estefano Conde confirmed a "disruption" in a pipeline likely due to a mudslide at the port, but could not immediately provide additional information.

The line in question, the Guadalajara Pipeline, is owned by pipeline company TransCanada Corp and transports natural gas in a gaseous state to the terminal at Manzanillo.

The company said that service to its natural gas customers, both CFE and state oil and gas monopoly Pemex, on that section of the pipeline has been temporarily suspended.

"A pipe linking the terminal to the gas grid was damaged by Hurricane Manuel ... it has affected the unloading date of cargoes," a source with knowledge of the matter told Reuters.

Cargo deliveries into the terminal may be delayed by at least one week, the source said, adding that the pipeline issue should be solved in that time.

"CFE announced the force majeure probably on Friday," he said.   Continued...