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In May, Gato Negro requested authorization to export via pipeline initially to Mexico up to 0.647 billion cubic feet (Bcf) per day of natural gas, and ultimately re-export for delivery to any country that has signed a free trade agreement with the US up to 0.556 Bcf/d of LNG.
Houston-based Big River Energy, an affiliate of Gato Negro, was granted authority by DOE in December 2022 to export natural gas to Mexico for a two-year term by pipeline.
Big River has also applied for authority to export LNG to Mexico by truck through 2030.
Gato Negro is based in Mexico and is 50/50 owned by Carlos Camacho and Emilio Fuentes, both of whom are citizens of Mexico.
2050
The DOE said in its order dated October 1 that it has authorized Gato Negro Permitium Uno to export US-sourced natural gas via pipeline to the proposed Gato Negro Manzanillo LNG plant to be located in the State of Colima, Mexico, for consumption in Mexico.
Additionally, after the US-sourced natural gas is liquefied at the Manzanillo plant, Gato Uno is
authorized to deliver and consume the LNG supplies in Mexico and/or to re-export the supplies to FTA countries.
The volume authorized in this order is equivalent to 236 Bcf/yr of natural gas for a term to start on the date of first export following the start of commercial operation of the Manzanillo plant, and extending through December 31, 2050.
This natural gas may be re-exported as LNG to Australia, Bahrain, Canada, Chile,
Colombia, Dominican Republic, El Salvador, Guatemala, Honduras, Jordan, Mexico, Morocco,
Nicaragua, Oman, Panama, Peru, South Korea, Singapore, and to any nation with
which the US subsequently enters into an FTA agreement.
“Gato Uno is authorized to export this LNG on its own behalf and as agent for other entities that hold title to the natural gas or LNG, pursuant to one or more contracts of any duration,” the DOE said.
Manzanillo LNG plant
According to Gato Negro, the major components that will be constructed as part of the project include up to four liquefaction trains capable of producing up to about 4 million mt per year of LNG, a gas pretreatment unit for removal of Mercury, acid gas, water, and natural gas liquids, and a jetty.
Other components include emergency vapor management equipment, piping and other facilities to permit the interconnection of the project to existing pipeline infrastructure, and associated utilities interconnections.
Feed gas for the project will be supplied through the TC Energy Guadalajara Manzanillo pipeline.
Gato Negro said the project will use a modular structure employing a refrigerant technology process.
Besides loading LNG to vessels, the Manzanillo plant will include a truck rack in case some proportion of the natural gas volumes would be resold and consumed in Mexico.
The Manzanillo plant’s location will “benefit” signatories to free trade agreements with the
US, including not only Mexico but Columbia, Korea, Singapore, Chile, and Costa Rica because the LNG from Manzanillo will not need to transit the potential bottleneck of the Panama Canal that other LNG supplies from the US Gulf Coast may experience when headed into the Pacific, Gato Negro said.
The Manzanillo location also will “reduce consumption of maritime fuel for ships transporting LNG to countries located on the Pacific Ocean relative to those cargoes that might serve the same markets that are transported from the US Gulf Coast,” it said.
Non-FTA approval
In August, Gato Negro Permitium Dos filed an application seeking long-term authorization from the DOE for non-FTA exports of US natural gas from Gato Negro’s planned liquefaction plant in Manzanillo.
Gato Negro Permitium Dos is requesting “expeditious” long-term authorization to export via pipeline initially to Mexico up to 0.647 Bcf per day of natural gas, and ultimately re-export for delivery to any country that has not signed a free trade agreement with the US up to 0.556 Bcf/d of LNG.
The authorization is requested for a term extending through December 31, 2050.