Mexico Pacific seals third LNG SPA with ExxonMobil

Mexico Pacific, the developer of the planned $14 billion Saguaro Energia LNG export project, has signed an additional long-term deal to supply liquefied natural gas to a unit of US energy giant ExxonMobil.

Under the 20-year sales and purchase agreement (SPA), ExxonMobil LNG Asia Pacific will purchase 1.2 million tonnes per year of LNG on a free-on-board basis from the third train of Mexico Pacific’s LNG export facility, Saguaro Energia LNG, located in Puerto Libertad, Sonora.

This is the third SPA Mexico Pacific signed with ExxonMobil LNG Asia Pacific following two 20-year deals announced in February last year for a combined 2 mtpa of LNG.

The volume originates from the option under the separate LNG SPAs executed last year, covering volumes from trains 1 and 2.

There is also an option for another 1 mtpa from Train 4, according to Mexico Pacific.

FIDs expected this year

Mexico Pacific said in December, while announcing a long-term deal with Australian LNG player Woodside, that it expects to take a final investment decision on the first two trains in the first half of this year.

“While we remain focused on initially taking FID on trains 1 and 2, this latest LNG SPA with ExxonMobil concludes the LNG sales required for a subsequent train 3 FID expected this year,” Ivan Van der Walt, CEO of Mexico Pacific, said on Tuesday.

“With key contracting and permits in place across the terminal and pipeline, we are well positioned to sanction the project, connecting Permian Basin gas with the world’s largest LNG markets in Asia,” he said.

Contracts

In November 2023, Mexico Pacific awarded the engineering, procurement, and construction contract for the pipeline which will deliver natural gas to the proposed facility.

The 500-mile (850km) pipeline will be utilized as the primary natural gas supply path for the transportation of up to 2.8 Bcf/d natural gas from the US border to the first phase of Mexico Pacific’s 15 mtpa Saguaro Energia LNG export facility.

As per other LNG supply contracts, Mexico Pacific signed in August a long-term deal to supply LNG to US energy giant ConocoPhillips.

Under the 20-year SPA, ConocoPhillips will offtake 2.2 million tonnes per year of LNG on a FOB basis from Mexico Pacific’s LNG export facility and the deal includes train 1, 2, and 3.

Prior to this deal, China’s Zhejiang Energy agreed to buy 1 mtpa of LNG for 20 years from the proposed project.

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.

Moreover, the firm controlled by Quantum Energy Partners also signed a contract in 2022 with China’s Guangzhou Development Group for 2 mtpa of LNG.

Most Popular

Another steam LNG carrier sold for demolition

An NYK-managed steam liquefied natural gas (LNG) carrier has been sold for demolition, according to brokers.

Canada approves Ksi Lisims LNG project

According to a statement on Monday, Julie Dabrusin, Minister of Environment and Climate Change, issued her decision under the...

Abaxx sees significant volume growth in its LNG futures

Abaxx Commodity Futures Exchange, a wholly owned subsidiary of Abaxx Technologies (CBOE:ABXX) has seen significant volume growth in its physically deliverable LNG futures during the past summer months, according to Abaxx Exchange Chief Commercial Officer Joe Raia.

More News Like This

Golden Pass gets OK to place MP 33 compressor station in service

Golden Pass LNG, a joint venture owned by energy giants QatarEnergy and ExxonMobil, has secured approval from the US FERC to place into service its MP 33 compressor station, as it continues to move forward with commissioning activities at its three-train LNG plant in Texas.

Golden Pass LNG gets new FERC approval as commissioning progresses

Golden Pass LNG, a joint venture owned by energy giants QatarEnergy and ExxonMobil, is moving forward with commissioning activities at its two-train LNG plant in Texas with a new approval from the US FERC.

Golden Pass LNG seeks re-export approval

Golden Pass LNG, a joint venture owned by energy giants QatarEnergy and ExxonMobil, is seeking approval from the US DOE to export previously imported LNG from October, as it nears the launch of the first liquefaction train.

Golden Pass LNG contractors agree terms for second and third train

Japan's Chiyoda and US-based McDermott have signed a binding term sheet with Golden Pass LNG, a joint venture owned by QatarEnergy and ExxonMobil, to complete the construction of the second and third liquefaction units at the giant LNG export plant in Texas.