Mexico Pacific and ExxonMobil sign additional LNG offtake agreement

LNG project developer Mexico Pacific has signed a third long-term sales and purchase agreement (SPA) with ExxonMobil LNG Asia Pacific for an additional 1.2 million tonnes per annum (mtpa) of LNG from Train 3 of Mexico Pacific’s Saguaro Energia project located on the west coast of Mexico.

With this agreement, ExxonMobil exercised the option for additional volumes of LNG under separate SPAs signed in January 2023, covering volumes from Trains 1 and 2.

Under the Train 3 deal, ExxonMobil will purchase LNG on a free-on-board basis over a 20-year term. The company also has an option for another 1 mtpa from Train 4.

“We are pleased to announce this additional long-term SPA with ExxonMobil, extending our much-valued partnership into Train 3,” said Ivan Van der Walt, CEO Mexico Pacific.

“While we remain focused on initially taking FID on Trains 1 and 2, this latest LNG SPA with ExxonMobil concludes the LNG sales required for a subsequent Train 3 FID expected this year. 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.”

Peter Clarke, ExxonMobil’s Head of Global LNG and Senior Vice President, added: “Bringing additional North American LNG to global markets advances energy security and helps to lower emissions in many countries with high energy demand.

“Long term contracts play an essential role in underpinning the investments that will be required to advance the energy transition. We look forward to working with Mexico Pacific to continue growing our portfolio and deliver Permian natural gas to global markets.”