US Firm Set to Greenlight US$14bn LNG Investment in Mexico
05.08.2023 By News - NEWS

May 8, 2023 [bnamerica] – Mexican President Andrés Manuel López Obrador (AMLO) said Texas-based Mexico Pacific has given the green light to build the US$14bn Saguaro Energía LNG facility in Sonora state.


“We have been given the good news that Pacific Limited will build a gas pipeline and a liquefaction plant in Sonora, with an investment of US$14bn,” ALMO said in a Twitter post on Wednesday.

The project, which has long been in development and was expected to reach a final investment decision (FID) this year, involves the three-stage construction of a 14.1Mt/y terminal in the port of Puerto Libertad. It also includes the construction of a new pipeline called Saguaro Connection.

BNamericas contacted Mexico Pacific for further details but had not obtained a response at the time of publication.

Each of the three stages will bring one liquefaction unit with 4.7Mt/y capacity and some 600Bf3/d (billion cubic feet per day) of gas consumption online.

The company said last year that it had obtained all major permits required to operate the project.

Mexico Pacific signed a series of long-term supply contracts in the lead up to making an FID. In July, it said it had signed an 20-year sale and purchase agreement (SPA) for 2.6Mt/y with Shell stemming from the project’s first two trains.

Then in February the firm said it had signed two 20-year SPAs with Exxonmobil, for a total of 2Mt/y from the first two trains, with an option to buy an additional 1Mt/y from the third train. A second deal with Shell came in late March, when the company committed to buy 1.1Mt/y from the third train.

Saguaro Energía is among the largest projects in Mexico’s growing LNG portfolio, which seeks to leverage cheap US shale gas and Mexican transport capacity to take advantage of higher LNG prices in Asia and Europe.

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