Mexico Pacific and Korea’s POSCO International Corp. signed a 20-year sales and purchase agreement for the Asian company to acquire 0.7 mtpa of LNG from the proposed the Saguaro Energía LNG facility on Mexico’s Pacific Coast. (Source: Shutterstock)
Mexico Pacific, the Houston-based company developing the Saguaro Energía LNG facility on Mexico’s West Coast, signed a long-term sale and purchase agreement with POSCO International Corp.
In the deal, POSCO International, Korea’s largest energy trading company, will acquire 0.7 million tonnes per annum (mtpa) of LNG on a free-on-board basis over 20 years, Mexico Pacific said Aug. 28 in a press release.
“Mexico Pacific and POSCO International are evaluating additional opportunities to expand upon this initial commercial partnership,” Mexico Pacific said.
Korea has a robust trade relationship with Mexico and is one of the only major economies in Asia that has a comprehensive free trade agreement with the U.S., according to Mexico Pacific.
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The deal further validates the strategic value of west coast North American LNG for Korea, said Mexico Pacific Chief Marketing Officer Sungbok Park in the release.
The first phase of the Saguaro Energía project will include three trains with a processing capacity of 5 mtpa each (combined 15 mtpa). A second phase of the Saguaro Energía project could add three additional trains with a processing capacity of 5 mtpa each (combined 15 mtpa).
“With three liquefaction trains commercially contracted, strong support from governments and capital markets, and key federal, state and municipal permits in place across the Saguaro Energía LNG facility and the Sierra Madre Pipeline, Mexico Pacific is positioning the project for a positive final investment decision,” Mexico Pacific said in the release.