Saguaro Energia LNG export terminal developer, Mexico Pacific Limited announced Tuesday (1/16) it has reached a deal with ExxonMobil to supply the global giant’s LNG Asia Pacific (EMLAP) business. Under the Sales and Purchase Agreement (SPA), Mexico Pacific will provide EMLAP with 1.2 MTPA of LNG for a 20-year term from Train 3 of the Saguaro Energia LNG terminal. The SPA also includes an option for an incremental 1 MTPA from Train 4. This deal comes on the heels of the agreement between Mexico Pacific and ExxonMobil last February for the terminal to supply EMLAP with 2.0 MTPA from Trains 1 and 2.
“We are pleased to announce this additional long-term SPA with ExxonMobil, extending our much-valued partnership into Train 3”, said Ivan Van der Walt, CEO Mexico Pacific. “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. 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 to provide reliable and cost-effective LNG to support the energy transition.”
The Saguaro Energia LNG terminal, located in Puerto Libertad on the west coast of the state of Sonora, Mexico is proposing to be developed in phases with Phase 1 consisting of 3- 4.7 MTPA trains totaling 14.1 MTPA and Phase 2 (Saguaro Energia II) adding an additional 14.1 MTPA across 3 trains. Capacity of Trains 1 and 2 of Phase 1 are fully subscribed by anchors: Shell, ConocoPhillips, ExxonMobil, Woodside Energy, Zhejiang Energy International and Guangzhou Development Group. Construction and commissioning timelines for the project are subject to Mexico Pacific moving forward with final investment decisions which have yet to be formally announced.
