Mexico Pacific inks LNG supply deal with China’s Zhejiang Energy

China’s Zhejiang Energy has signed a long-term deal to buy liquefied natural gas from Mexico Pacific, the developer of the planned Sonora LNG export project.

Under the 20-year SPA, Zhejiang Energy International will offtake 1 million tons per year LNG on a FOB basis from Mexico Pacific’s anchor LNG export facility, Saguaro Energia, located in Puerto Libertad, Sonora, according to a statement by Mexico Pacific.

When fully operational, the facility will have three trains and a combined capacity of 14.1 mtpa.

The first phase includes the first two 4.7 mtpa liquefaction trains, two tanks and one berth, while the second phase completes the anchor project with a third 4.7 mtpa train, according to Mexico Pacific.

“We are delighted to deepen our supply relationship with Asian end user customers via this long-term SPA with Zhejiang Energy,” Ivan Van der Walt, CEO of Mexico Pacific, said in the statement.

He said that LNG is an “important pillar” to China’s energy security needs and it’s underlying green policy ambitions.

“Zhejiang Energy is the sole gas distributor in Zhejiang province, one of the largest provincial economies in China, and under this new agreement Mexico Pacific will further support the growing energy requirements of this region,” the CEO said.

He did not provide any information regarding a final investment decision on the project.

Earlier this year, the CEO said that the firm was working to deliver FID on the first two trains and a subsequent train 3 FID.

Shell, ExxonMobil, and Guangzhou Development Group

In March, Shell and Mexico Pacific signed another SPA for 1.1 million tonnes per year from the third train of Mexico Pacific’s anchor LNG export facility.

This is the third SPA for the two firms as they announced a 20-year deal in July last year for 2.6 million tonnes per year of LNG from the first two trains of Mexico Pacific’s anchor LNG export facility.

Besides Shell, Mexico Pacific signed two long-term LNG SPAs with a unit of US energy giant ExxonMobil.

Under these SPAs, ExxonMobil LNG Asia Pacific will purchase a combined 2 million tonnes per year of LNG on a free-on-board basis from the first two trains of Mexico Pacific’s anchor LNG export facility.

Moreover, the firm controlled by Quantum Energy Partners also signed a contract last year with China’s Guangzhou Development Group for two million tonnes per year.

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