Woodside secures long-term LNG deal with Mexico Pacific Limited

In a significant move shaping the global energy landscape, Woodside has inked a sales and purchase agreement (SPA) with Mexico Pacific Limited. This monumental 20-year contract involves the purchase of 1.3 million tonnes per annum (Mtpa) of liquefied natural gas (LNG), equating to roughly 18 cargoes annually. This agreement aligns with Woodside’s strategic objective to broaden its global LNG portfolio and flexibility, highlighting LNG’s critical role in the ongoing energy transition.

Strategic Expansion into the Pacific Basin

Under the leadership of CEO Meg O’Neill, Woodside is expanding its reach into the Pacific Basin. This agreement not only adds a new source of LNG to Woodside’s trading portfolio but also enhances the company’s geographic diversity in the Pacific region. The deal involves sourcing LNG from the Saguaro Energia LNG Project, situated in Puerto Libertad, Sonora, Mexico. This strategic location offers proximity to key markets in Asia, a crucial factor in Woodside’s expansion plans.

Collaboration and Future Prospects

The agreement, contingent on Mexico Pacific’s final investment decision (FID) on the Saguaro Energia LNG Project’s third train, is expected to be finalized in the first half of 2024, with commercial operations targeted for 2029. Sarah Bairstow, President of Mexico Pacific, expressed enthusiasm for the collaboration with Woodside, acknowledging it as a foundation customer of Train 3. This partnership is seen as vital in addressing global energy security and transition needs.