Page 6 - LatAmOil Week 06 2023

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Rendering of Saguaro LNG plant (Image: Mexico Pacific)

Mexico Pacific and ExxonMobil sign

long-term supply deals for Saguaro LNG

HOUSTON-BASED Mexico Pacific Ltd decades.”
announced on February 7 that it has agreed to Peter Clarke, senior vice president of LNG
supply a subsidiary of the US super-major Exx- for ExxonMobil Upstream Co., expressed sat-
onMobil with LNG from a new plant it intends isfaction with the agreements. “LNG has an
to construct in Sonora State. important role to play in helping society reduce
In a statement, Mexico Pacific explained that emissions by enabling the delivery of lower-car-
it had signed two sales and purchase agreements bon energy,” he stated. “We look forward to
(SPAs) with ExxonMobil LNG Asia Pacific working with Mexico Pacific to continue grow-
(EMLAP). ing ExxonMobil’s LNG portfolio and deliver
Under these two documents, the latter com- Permian natural gas to global markets.”
pany will buy 2mn tonnes per year (tpy) of LNG Wil VanLoh, the founder and CEO of Mex-
from the former on a free on board (FOB) basis ico Pacific’s controlling stakeholder Quantum
over a period of 20 years. Energy Partners, also praised the project, say-
The LNG will come from the first two pro- ing: “Mexico Pacific is a strategic asset in our
duction trains of the Saguaro LNG facility, energy transition infrastructure portfolio. Mex-
which Mexico Pacific will build in Puerto Lib- ico Pacific’s unparalleled project fundamentals
ertad, the statement said. EMLAP will also have and highly experienced leadership team have
an option to purchase another 1mn tpy from the established it as a premier LNG solution for
plant’s third production train, it added. customers and Permian producers to provide
These deals will help build critical momen- reliable and cost-effective LNG to support the
tum for the Saguaro LNG project as investors energy transition.”
move toward a final investment decision (FID), Both Clarke and VanLoh were referring
commented Ivan van der Walt, Mexico Pacif- to Mexico Pacific’s plans to use natural gas
ic’s CEO. “We are pleased to announce these extracted from fields in the Permian basin
long-term SPAs with ExxonMobil,” he said. and piped across the US border into Mexico
“We have reached a critical point on contract as feedstock for Saguaro LNG. When finished,
volumes required for FID on our first two trains the plant will have three production trains with
and will now shift focus to close contracting on a combined capacity of 14.1mn tpy. It will sell
the significant commercial momentum in place LNG primarily to Asia, where it expects to have
for a subsequent Train 3 FID. With natural gas a cost advantage since it will be able to ship its
playing a critical role in the quest for global output westward across the Pacific Ocean with-
energy security and the energy transition, we out paying fees for transit through the Panama
remain committed to supplying vital energy for Canal. ™

P6 www. NEWSBASE .com Week 06 08•February•2023