Saguaro Energía LNG I and II are located in Puerto Libertad in Sonora, Mexico. The total project—to be developed in two phases—will offer Permian gas producers a relief valve for associated gas. (Source: Shutterstock/ Mexico Pacific)
Mexico Pacific Ltd. is working with financial advisers as it eyes a 2025 final investment decision (FID) on the anchor phase of the 30-million tonnes per annum (mtpa) Saguaro Energía LNG project on Mexico’s Pacific Coast.
The company is working with MUFG, Santander and JP Morgan to arrange the financing needed—likely a $15 billion investment—to support FID and the anchor phase of the liquefaction project, Patrick Hughes, Mexico Pacific senior vice president of government & external affairs, told Hart Energy.
“Each of them has significant experience and involvement in every major energy infrastructure project financing across North America in recent years,” Hughes said in an Oct. 23 email.
Quantum Capital Group is the controlling owner and lead sponsor of Mexico Pacific.
Saguaro Energía LNG I and II are located in Puerto Libertad in Sonora, Mexico. The total project—to be developed in two phases—will offer Permian gas producers a relief valve for associated gas and connect the U.S.’ cheapest gas to Asia, which will remain a key demand center for decades, Mexico Pacific said.
RELATED
Mexico Pacific Edging Saguaro LNG Toward FID to Move Permian Gas
Saguaro Energía I will include three 5-mtpa trains (15 mtpa of combined capacity). Saguaro Energía II would also include three 5-mtpa trains for another 15 mtpa of combined capacity.
Saguaro Energía I will source gas from Waha to be shipped along the 253-km Saguaro Connector pipeline on the U.S. side of the border. The Permian gas will then be shipped along the 802-km Sierra Madre pipeline on the Mexican side of the border.
Both segments of the LNG project will have the capacity to handle 2.8 Bcf/d of gas.
Houston-based Mexico Pacific has offtake agreements with Exxon Mobil Corp., ConocoPhillips, Shell Plc and Woodside Energy.
Additionally, Mexico Pacific made similar agreements with Asian players such as Posco International, Zhejiang Energy and GuangZhou Gas Group Co. Ltd.
All the agreements are indexed to the Waha and/or Henry Hub and include combined liquefaction and pipeline fees ranging from $2.50/MMBtu to $3.77/MMBtu, according to Poten & Partners.
Export terminals on Mexico's Pacific Coast would allow Permian LNG to reach new (or maybe Asian) markets, but certain headwinds keep developers from capitalizing on the Mexican Pacific Coast's access to international markets, according to Poten & Partners U.S. LNG Analyst Sergio Chapa.
Some include regulatory hurdles, a high-skilled labor shortage, limited natural gas pipeline capacity and in some cases, disinformation on social media, Chapa said.
Recommended Reading
US Drillers Cut Oil, Gas Rigs for First Time in Three Weeks
2025-03-28 - The oil and gas rig count fell by one to 592 in the week to March 28.
BP Earns Approval to Redevelop Oil Fields in Northern Iraq
2025-03-27 - The agreement with Iraq’s government is for an initial phase that includes oil and gas production of more than 3 Bboe, BP stated.
DNO ‘Hot Streak’ Continues with North Sea Discovery
2025-03-26 - DNO ASA has made 10 discoveries since 2021 in the Troll-Gjøa exploration and development area.
TechnipFMC Awarded EPCI for Equinor’s Johan Sverdrup Phase 3
2025-03-25 - The Johan Sverdrup Field, which originally began production in 2019, is one of the largest developments in the Norwegian North Sea.
Exclusive: Metal Tariffs Unlikely to Disrupt Lower 48 Supply Chain
2025-03-25 - With tariffs discussions creating uncertainty in the energy sector, Luca Zanotti, Tenaris’ U.S. president, said he sees minimal impact with tariffs on oil country tubular goods, in this Hart Energy exclusive interview.
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.