Shell added to their 2.6M tons/year LNG purchase agreement with Mexico Pacific with a further ~1.1M metric tons/year from the third train of Mexico Pacific’s planned Seguaro Energia LNG export facility. On Monday the now UK based Shell ($SHEL) signed a 20-year sales and purchase agreement to offtake a further ~1.1M metric tons/year of liquefied natural gas from the third train of Mexico Pacific’s planned Seguaro Energia LNG export facility.
Shell has a previous agreement signed in July 2022 for 2.6M tons/year from the first two liquefaction trains from the LNG export project, while the latest deal was for LNG from a planned third train.
Mexico Pacific signed two 20-year deals with an Exxon Mobil (XOM) affiliate for a total of 2M tons/year in February. Including the latest Shell deal, Mexico Pacific said it now has long-term agreements covering more than half of the three-train production capacity.
Privately held Mexico Pacific has yet to commercially sanction Saguaro Energia, which would be built on the Sea of Cortez in Puerto Libertad, Mexico, and use U.S. feedgas to produce LNG; the project would have a capacity of 14.1M tons/year when all three liquefaction trains are constructed.
About Mexico Pacific
Mexico Pacific’s anchor project, the Saguaro Energia LNG Facility, consists of 3 trains in the first phase with a capacity of 14.1 MTPA. West Coast North American LNG export facility located in Puerto Libertad, Sonora, Mexico. The Saguaro Energia LNG Facility achieves significant cost and logistical advantages, including the lowest landed price of North American LNG into Asia, leveraging low-cost natural gas sourced from the nearby Permian Basin, and a significantly shorter shipping route that avoids Panama Canal transit for Asian markets. More information can be found at http://www.mexicopacific.com.
Source: Mexico Pacific
From The TradersCommunity News Desk