Mexico Pacific inks offtake deal with POSCO

HOUSTON, August 30, 2024 – Mexico Pacific, owner of the Saguaro Energía LNG facility and associated Sierra Madre Pipeline, has signed a sales and purchase agreement under which it will supply Korea’s POSCO International Corporation with 700,000 tonnes per year (tpy) of LNG over 20 years, Mexico Pacific announced on Wednesday.

Located in Puerto Libertad, Sonora, Mexico, the 15-million-tpy Saguaro Energía LNG facility will have three liquefaction trains when it becomes operational and will receive gas from the Permian Basin in Texas through the 800-kilometre Sierra Madre Pipeline, also under development.

“We are delighted to welcome POSCO International as a foundation customer, further validating the strategic value of west coast US LNG for Korea, one of the world’s largest LNG importing markets,” said Sungbok Park, chief marketing officer of Mexico Pacific.

According to Mexico Pacific, the Saguaro Energía LNG facility will be able to achieve the lowest landed price of US LNG into Asia by leveraging Permian Basin gas and a significantly shorter shipping route that avoids Panama Canal transit risk.

Image courtesy of Mexico Pacific

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