Mexico Pacific teams up with CFE on Saguaro LNG project

Mexico Pacific is joining forces with Mexico’s Federal Electricity Commission for natural gas supplies to the planned $14 billion Saguaro Energia LNG export project.

The Saguaro Energía LNG export project includes the construction of a three-train, 15 mtpa facility in Puerto Libertad, Sonora, supported by a natural gas pipeline that will cross Texas, Chihuahua, and Sonora.

According to a statement by Mexico Pacific, Mexican President Andres Manuel Lopez Obrador met with the company’s executives at the planned location of the facility on July 15.

Mexico Pacific said Lopez supports the construction of the project and he witnessed the consolidation of the strategic alliance between the company and CFE.

Under the 20-year agreement, CFE will supply Mexico Pacific with natural gas delivered from the Permian Basin into Mexico Pacific’s pipeline in the US and via CFE’s pipelines in Mexico.

Mexico Pacific said the deal creates “significant” long-term alignment between the parties resulting in multi-billion dollar revenues for CFE and diversified gas deliveries for Mexico Pacific.

“Mexico Pacific welcomes CFE as a long-term strategic partner. CFE has built a reputation as a large scale, highly reliable portfolio gas supplier with unparalleled experience in gas pipeline execution and supply in Mexico,” Ivan Van der Walt, CEO of Mexico Pacific, said in the statement.

“With key permits and agreements in place, including the LNG export permit, CFE brings tremendous value to the project as we move into construction and operations,” he said.

Offtake deals

The first phase of the project 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.

Mexico Pacific recently signed a long-term deal to supply LNG to China’s Zhejiang Energy.

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.

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