MEXICO CITY, May 20 (Reuters) - Mexico's state electricitycompany CFE announced on Monday the purchase of nine shipmentsof liquefied natural gas (LNG) for delivery through 2014 fromBritish oil firm BP and Swiss energy trader Trafigura.
The new purchases, aimed at averting fuel shortages asdomestic gas demand grows, cover a volume of between 100 and 120million cubic feet of LNG and deliveries will start next month,CFE said in a statement.
Eight of the cargoes will be supplied by BP and oneby Trafigura, with the origin of the LNG spreadacross Trinidad and Tobago, Nigeria, Brunei, Norway and Qatar.
The 2013 LNG shipments will be divided between CFE and stateoil monopoly Pemex, a major domestic consumer of natural gas.Next year's shipments will all go to Pemex.
Mexico will pay a premium of about $1.26 per million Britishthermal units (mmBtu) above the Asian benchmark price for LNG onsome of the deliveries, according to a report from consultancyArgus. Asia currently pays more than $14/mmBtu for LNG, farabove the price of U.S. natural gas imports via pipelines.
Earlier this month, CFE purchased 18 LNG cargoes from energytrader Trafigura also set for shipment in 2013 and 2014.
CFE said it has signed 27 total LNG purchase agreements todate, and expects to ink two more in the next few days.
The power utility launched a tender for about 30 LNG cargoesearlier this month as piped imports from the United States lagdemand as Mexican domestic output declines.