ExxonMobil agrees to purchase 2 mtpa of LNG from Mexico Pacific
Mexico Pacific, a developer of the LNG export project in Puerto Libertad, Sonora, has signed two long-term sale and purchase agreements (SPAs) with ExxonMobil LNG Asia Pacific for the sale of a combined 2 million tonnes per annum (mtpa) of LNG.
As per agreements, the ExxonMobil affiliate will buy 2 mtpa of LNG on a free-on-board basis from the first two trains of Mexico Pacific’s anchor LNG export facility, called Saguaro Energia LNG, over a 20-year term.
In addition to the two agreements, ExxonMobil also has an option for 1 mtpa from the third train.
According to Ivan Van der Walt, CEO of Mexico Pacific, the developer has now reached a critical point in contract volumes required for the final investment decision (FID) on the first two trains and will shift focus to close contracting for a subsequent train 3 FID.
CEO added that the project will now also commence advanced engineering with American EPC contractor Bechtel.
“LNG has an important role to play in helping society reduce emissions by enabling the delivery of lower carbon energy”, said Peter Clarke, Senior Vice President of LNG for the ExxonMobil Upstream Company. “We look forward to working with Mexico Pacific to continue growing ExxonMobil’s LNG portfolio and deliver Permian natural gas to global markets.”
Wil VanLoh, Founder and CEO of Quantum Energy Partners, the controlling stakeholder of Mexico Pacific, added: “Mexico Pacific is a strategic asset in our energy transition infrastructure portfolio. Mexico Pacific’s unparalleled project fundamentals and highly experienced leadership team have established it as a premier LNG solution for customers and Permian producers to provide reliable and cost-effective LNG to support the energy transition.”