August 29, 2024 [Storage Terminals Magazine]- Mexico Pacific, the owner of the Saguaro Energía LNG facility and the associated Sierra Madre pipeline, announced that it has signed a sales and purchase agreement with POSCO International Corporation, Korea’s largest energy trading company and a global leader in the pursuit of sustainable energy solutions.
Under the terms of the SPA, POSCO International will purchase 0.7 million tonnes per annum of LNG on a free-on-board basis over a 20-year period. Both companies are also exploring additional opportunities to expand this initial commercial partnership. Korea maintains a strong trade relationship with Mexico and is one of the few major Asian economies that have a comprehensive free trade agreement with the United States.
Through further engineering collaboration with its EPC contractors, Mexico Pacific has achieved significant optimisation outcomes this year, unlocking incremental LNG volumes that are financeable across global debt markets. Once operational, the first phase of Mexico Pacific’s Saguaro Energía LNG facility in Puerto Libertad, Sonora, Mexico, will include three liquefaction trains and associated infrastructure. This facility will leverage abundant, low-cost natural gas from the Permian Basin in Texas, offering the lowest landed price of LNG into Asia globally, meeting the growing energy demands and positioning Mexico as the world’s fourth largest LNG exporter.
“We are delighted to welcome POSCO International as a foundation customer, further validating the strategic value of west coast North American LNG for Korea, one of the world’s largest LNG importing markets,” said Sungbok Park, chief marketing officer of Mexico Pacific. “We look forward to a lasting and fruitful partnership with POSCO International and to delivering world-class infrastructure that strengthens global energy security, reduces emissions, and improves the lives of millions of people around the world.”
With three liquefaction trains commercially contracted, robust support from governments and capital markets, and key federal, state, and municipal permits secured for the Saguaro Energía LNG facility and the Sierra Madre Pipeline, Mexico Pacific is positioning the project for a positive final investment decision. Collectively, these developments represent the largest private investment in Mexico and form a foundational pillar of the Sonora Plan, which promotes clean energy development, investment, and economic prosperity for the region.
Free Trial: Access 13,300 Tank Terminal and Production Facilities
13,300 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data
