By Baker & McKenzie
Real Estate and Infrastructure

In compliance with the Federal Law of Measurement Units and Norms, the Ministry of Energy published the Official Mexican Standard NOM-013-SECRE-2004 ("NOM-013") entitled "Safety requirements for the design, construction, operation, and maintenance of terminals for liquid natural gas storage which include systems, equipment and facilities for the reception, transportation, vaporization and delivery of natural gas", in the Federal Official Gazette ("DOF") on November 8, 2004.

NOM-013 replaces NOM-EM-001-SECRE-2002 entitled "Safety requirements for the design, construction, operation, and maintenance of terminals for liquid natural gas storage, which include systems, equipment and facilities for the reception, transportation, regasification and delivery of such fuel".

Likewise, NOM-013 has its origin in the Official Mexican Standard Project NOM-013-SECRE-2003 (the "Project) published in the DOF on September 19, 2003.

NOM-013 consists of four sections: the first section applies to LNG storage terminals with fixed facilities in firm ground. The second section applies to LNG storage terminals installed off-shore, from the LNG point of reception to the point of delivery of such natural gas on gaseous form to a transportation system through pipelines, and including systems for the reception, transportation, storage, and vaporization of LNG and delivery of natural gas. The third section of NOM-013 refers to the design of the underwater pipeline for the transportation of natural gas from the storage terminal out to sea to the littoral. Finally, the fourth section of NOM-013 deals with the Conformity Evaluation Procedure (PEC), which sets out the methodology to determine the licensee´s level of compliance with NOM-013 in connection with the design, construction, operation and maintenance of the different kinds of terminals for liquefied natural gas storage, which include systems, equipment and facilities for the reception, transportation, vaporization and delivery of natural gas.

The design, construction, operation and maintenance of the LNG terminal shall comply with the minimum requirements set forth in NOM-013, without preventing the use of other systems, equipments, methods or means for quality, resistance, effectiveness, structural integrity, durability and security purposes, which may be equivalent or superior to those set forth in such NOM-013.

For any other thing not specifically set forth in NOM-013, including recent systems and design equipments, terminals or facilities that are not in firm ground or, generally, technology innovations with insufficient operative experience at the international level, the licensee shall be required to propose and justify before the Energy Regulatory Commission ("CRE") the technology to be used for such purposes, in order to obtain the relevant authorization. Furthermore, in order to comply with the requirements set forth in NOM-013, the licensee must also submit documentation and technical references evidencing those practices that have been internationally recognized.

In accordance with article 49 of the Federal Law of Measurement Units and Norms, the licensee may request the CRE´s authorization to use or apply materials, equipments, procedures, test methods, mechanisms, alternative procedures or technologies, in which case, the licensee would have to submit scientific or objective evidence that may be required to prove that the proposed alternative satisfies the objectives of NOM-013.

We strongly recommend those interested in participating in the development of LNG projects in Mexico, to carefully review NOM-013.