Mexico Pacific secures third LNG deal with ExxonMobil for Saguaro Energia
In a pivotal development for the global LNG market, Mexico Pacific has signed a third long-term Sales and Purchase Agreement (SPA) with ExxonMobil LNG Asia Pacific (EMLAP) for an additional 1.2 million tonnes per annum (MTPA) of Liquefied Natural Gas (LNG) from Train 3 of its Saguaro Energia project. This project, situated on the west coast of Mexico, represents a significant step in the energy transition and LNG export industry.
Strategic Extension of LNG SPAs
The latest SPA stems from an option under separate agreements executed in January 2023 for LNG volumes from Trains 1 and 2. Under the new agreement, EMLAP will purchase LNG on a free-on-board basis for a 20-year term, with an option for an additional 1 MTPA from Train 4.
Mexico Pacific and ExxonMobil: A Growing Partnership
Ivan Van der Walt, CEO of Mexico Pacific, emphasized the importance of this agreement, stating, “We are pleased to announce this additional long-term SPA with ExxonMobil, extending our much-valued partnership into Train 3. With key contracting and permits in place, 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.”
Mexico Pacific and ExxonMobil Advance Energy Transition with New LNG Sales Agreement
Peter Clarke, ExxonMobil’s Head of Global LNG and Senior Vice President, highlighted the global impact: “Bringing additional North American LNG to global markets advances energy security and helps to lower emissions in many countries with high energy demand. We look forward to working with Mexico Pacific to continue growing our portfolio and deliver Permian natural gas to global markets.”
Saguaro Energia: A Game Changer in LNG Exports
The Saguaro Energia LNG Facility, Mexico Pacific’s anchor project, is poised to be a major player in the LNG industry. Boasting a capacity of 15 MTPA, it is the most advanced LNG development project on North America’s West Coast. The facility leverages low-cost natural gas from the nearby Permian Basin and offers a shorter shipping route to Asian markets, bypassing the Panama Canal transit risk. This strategic positioning results in significant cost and logistical advantages, making it a key player in the global LNG export landscape.
This agreement with ExxonMobil not only reinforces Mexico Pacific’s role in the global energy sector but also marks a significant contribution to the broader energy transition, providing a reliable and environmentally conscious energy source to high-demand regions.