Mexico Pacific signs additional 1.2 Mt/year LNG deal with ExxonMobil

The Mexican LNG developer Mexico Pacific has signed its third long-term Sales and Purchase Agreement (SPA) with ExxonMobil LNG Asia Pacific (a subsidiary of the US oil and gas group ExxonMobil) for an additional 1.2 Mt/year of LNG from Train 3 of Mexico Pacific’s Saguaro Energia project located in Puerto Libertad, Sonora (Mexico). The agreement comes from two previous long-term SPAs signed between both parties for the supply of 2 Mt/year of LNG over a 20-year term on a free-on-board basis from the first two trains (1 Mt/year each) of the Saguaro Energia project, under which there was established an option for the supply an additional 1 Mt/year of LNG from Train 3. There is also an option for another 1 Mt/year from Train 4.

The 15 Mt/year Saguaro Energia LNG facility is said to be the most advanced LNG development project on the West Coast of North America. The FID is expected in the first half of 2024 and commercial operations are scheduled to commence in 2029. The project has received support from the government of the Mexican state of Sonora and has signed sales and purchase agreements with companies such as Zhejiang Energy, Shell, ExxonMobil, and ConocoPhillips. In December 2023, Mexico Pacific also signed an agreement with the Australian energy company Woodside for 1.3 Mt/year of LNG over 20 years.