ExxonMobil signs sales deal with Mexican LNG project

MEXICO CITY, January 18, 2024 – Energy giant ExxonMobil has signed a 20-year sales deal with Mexico Pacific for an additional 1.2 million tonnes per year of LNG from its upcoming Saguaro Energia LNG project, the operator announced on Tuesday.

The volumes will be supplied from the third train of the project and are in addition to other sales and purchase agreements signed by ExxonMobil from the first and second train.

There exists an option to source LNG from the project’s fourth train.

“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,” said Ivan Van der Walt, CEO of Mexico Pacific.

The project is located in Puerto Libertad, Mexico, and will have the production capacity of 15 million tonnes per year in its first phase and is being worked on by engineering and technology companies Bechtel, Techint and Baker Hughes.

Previously Mexico Pacific made LNG trade deals with energy giants Shell, ExxonMobil and ConocoPhillips involving the first two trains at the project.

The company recently signed an LNG offtake agreement with Woodside in December 2023.

Feedstock gas is expected to come from the USA’s Permian basin.

In November 2023, Mexico Pacific signed an EPC contract with Mexican-Italian joint venture company GDI Sicim Pipelines to build an 804-kilometre pipeline from the US border to the project.

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