Mexico Pacific Ltd., which is developing the 15 mtpa Saguaro Energia LNG project in Mexico, will source Permian Basin gas for LNG exports to Asia. (Source: Shutterstock)
Mexico Pacific Ltd., which is developing the 15 million tonnes per annum (mtpa) Saguaro Energia LNG project in Mexico, continues to eye an initial final investment decision (FID) regarding the first two trains and possibly a third one sometime in 2024, its CEO said.
The announcement came after Texas-based Exxon Mobil signed on to a third long-term sales and purchase agreement (SPA) for an additional 1.2 mtpa of LNG from the project located on the west coast of Mexico.
RELATED
Permian Gas to Anchor Mexico Pacific LNG Exports
“While we remain focused on initially taking FID on Trains 1 and 2, this latest LNG SPA with Exxon Mobil concludes the LNG sales required for a subsequent Train 3 FID expected this year,” Mexico Pacific CEO Ivan Van der Walt said in a Jan. 16 press release.
East Daley Analytics expects the facility to take FID this quarter.
“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,” Van der Walt said.
The third SPA is between Mexico Pacific and Exxon Mobil LNG Asia Pacific (EMLAP). Per the Train 3 LNG SPA, EMLAP will acquire the volumes on a free-on-board (FOB) basis over a 20-year term, Mexico Pacific said in the release. The 1.2 mtpa originates from the option under separate SPAs signed with Exxon in January 2023 related to volumes from Trains 1 and 2.
Mexico Pacific envisions future expansions to include three additional trains with capacity of 5 mtpa each. In the release, Mexico Pacific said there is also an option for another 1 mtpa from a potential Train 4, without specifying if it is related to Exxon.
Shell Plc and ConocoPhillips also have offtake deals with Mexico Pacific, which is controlled and sponsored by Quantum Capital Group.
Officials with Exxon didn’t immediately respond to an inquiry regarding the announcement.
RELATED
Recommended Reading
Private Equity Gears Up for Big Opportunities
2024-10-04 - The private equity sector is having a moment in the upstream space.
After BKV’s IPO, Is Market Open to More Public SMID Caps?
2024-10-03 - The market for new E&P and energy IPOs has been tepid since the COVID-19 pandemic. But investor appetite is growing for new small- and mid-sized energy IPOs, says Citigroup Managing Director Dylan Tornay.
Quantum’s VanLoh: New ‘Wave’ of Private Equity Investment Unlikely
2024-10-10 - Private equity titan Wil VanLoh, founder of Quantum Capital Group, shares his perspective on the dearth of oil and gas exploration, family office and private equity funding limitations and where M&A is headed next.
Cibolo Energy Closes Fund Aimed at Upstream, Midstream Growth
2024-09-10 - Cibolo Energy Management LLC closed its second fund, Cibolo Energy Partners II LP, meant to boost middle market upstream and midstream companies’ growth with development capital.
Cormetech Appoints Patricia Martinez to President, CEO
2024-08-20 - Cormetech’s former President & CEO Mike Mattes will now serve as chairman of the board.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.