Mexico Pacific inks Sonora LNG deal with ConocoPhillips and Bechtel

Mexico Pacific has joined forces with Bechtel and a unit of ConocoPhillips to work on slashing emissions at its planned 14.1 mtpa LNG export project in Puerto Libertad, Sonora.

MPL, controlled by US investment firm AVAIO Capital, said in a statement it has signed a collaboration agreement with ConocoPhillips LNG Licensing, and Bechtel, working with Techint.

The partners would assist in “lowering greenhouse gas emissions by pursuing innovative lower carbon LNG design solutions for the MPL LNG project future phases,” the firm said.

MPL plans to build the LNG export facility in three phases sourcing natural gas from the Permian gas basin in the United States.

According to MPL, the Sonora LNG project’s location on the West Coast of Mexico would, by itself, result in lower greenhouse gas emissions due to shorter transit to Asian markets as compared to many other Gulf of Mexico and Pacific Basin LNG producers.

This is in addition to lower greenhouse gas emissions resulting from the use of “leading” technologies.

Reducing baseline emissions further

The collaboration would seek to further reduce baseline emissions by exploring energy transition and greenhouse gas emission reduction technologies developed by ConocoPhillips LNG Licensing and designed by Bechtel in a “cost efficient and competitive manner.”

ConocoPhillips would support MPL and Bechtel in designing LNG trains based on its OCP Pro technology.

“We are constantly evolving our business strategies to further reduce our carbon footprint, and this cutting-edge initiative provides opportunities to reduce greenhouse gas emissions by seeking to curtail the production of emissions, rather than just capturing or reporting them,” Douglas Shanda, chief executive of MPL, said.

“MPL represents an excellent opportunity for ConocoPhillips to work closely with a west coast North American LNG developer to provide carbon-advantaged gas feedstock from our growing Permian Basin gas supply and assist MPL in developing a commercial strategy for supplying carbon-neutral LNG in the future,” Tom Mathiasmeier, president of global gas, power and LNG at ConocoPhillips, said.

MPL did not provide any information regarding the project timeline.

The firm previously said it had expected to reach a final investment decision by the first quarter of 2022 and to begin exports by 2025.

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