The Mexican oil and gas company Mexico Pacific has signed a 20-year agreement to supply 1 Mt/year of LNG to China’s Zhejiang Energy. Mexico Pacific will supply the gas to China from its 14.1 Mt/year Saguaro Energia export plant, located on the west coast of Mexico. Zhejiang Energy will purchase the LNG on a free on-board basis, starting in 2027.
China has recently ramped up its LNG sales and purchase agreements (SPAs). In June 2023, China’s ENN Natural Gas entered into a long-term SPA with Cheniere Energy (US) to buy 1.8 Mt/year of LNG from the Sabine Pass LNG expansion project located in Louisiana. Earlier in June, the China National Petroleum Corporation (CNPC) and QatarEnergy signed a 27-year SPA under the terms of which China will purchase 4 Mt/year of LNG from Qatar. In February 2023, Venture Global (US) signed two 20-year LNG supply agreements with the Chinese gas distributor China Gas Holdings totalling 2 Mt/year.