Mexico’s large-scale LNG export terminal strikes another 20-year offtake deal

August 19, 2025, by Melisa Cavcic

Amigo LNG, a Mexican joint venture between Texas-based Epcilon LNG and Singapore’s LNG Alliance, has landed a definitive multi-year sales and purchase agreement (SPA) with Gunvor Singapore, an independent commodity trading house, for the supply of liquefied natural gas (LNG) from its liquefaction facility under development on Mexico’s West Coast.

Rendering of the proposed LNG terminal; Source: LNG Alliance

Thanks to this long-term arrangement, Gunvor will buy 0.85 million tonnes per annum (mtpa) of LNG for 20 years, with deliveries once commercial operations begin at Amigo LNG’s first liquefaction train, scheduled for the latter half of 2028.

Kalpesh Patel, Co-Head of LNG Trading of Gunvor, highlighted: “Gunvor is committed to securing long-term LNG supplies to meet the evolving energy needs of our customers worldwide. Partnering with Amigo LNG aligns with our strategy of diversifying supply sources and supporting the global transition toward cleaner energy.”

The joint venture describes this long-term commitment as a major milestone, reinforcing its position as a project perceived to be Mexico’s first large-scale LNG export terminal on the west coast of the Americas.

According to the Mexican player, the Guaymas-based facility will leverage its strategic location and proximity to the prolific U.S. Permian Basin to deliver competitive LNG supplies to customers in Asia and Latin America.

Aside from strengthening global LNG supply chains, the Amigo LNG project is said to serve as a bridge for U.S.–Mexico energy trade by monetizing American natural gas exports through Mexico’s west coast, enhancing cross-border energy integration.

The project is also seen as a means of creating bilateral economic value and reinforcing the role of the U.S. and Mexico’s energy bonds as strategic partners in delivering secure and affordable energy to the world.

Dr. Muthu Chezhian, CEO of LNG Alliance, commented: “We are delighted to welcome Gunvor as one of our key foundation offtakers. This agreement underscores the confidence global energy players place in Amigo LNG’s ability to deliver reliable, flexible, and competitive LNG to international markets.”

This offtake deal comes a few months after Amigo LNG disclosed a 20-year sales and purchase agreement with Sahara Group.