Page 13 - GLNG Week 28 2022
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GLNG AMERICAS GLNG
Shell subsidiary signs 20-year LNG
supply deal with MPL plant in Sonora
MEXICO SHELL (UK) announced on July 12 that its sub- ensure a shorter shipping distance to Asia and
sidiary Shell Eastern Trading Ltd had arranged lower landed pricing demonstrates the value
to purchase 2.6mn tonnes per year (tpy) of LNG of West Coast North American LNG. We are
from a new gas liquefaction plant slated for con- equally delighted that Shell has chosen to work
struction at Puerto Libertad in Mexico’s Sonora with us as we continue to pursue LNG produc-
State. tion growth to meet increasing energy security
In a statement, Shell said that its subsidiary needs.”
had signed a sales and purchase agreement (SPA) Meanwhile, Steve Hill, Shell’s executive vice
with an affiliate of the future plant’s owner and president for energy marketing, said the deal
operator Mexico Pacific Ltd (MPL), which is with MPL would help the super-major meet
controlled by the US investment firm AVAIO global demand for LNG. “Energy security
Capital. That agreement provides for Shell East- remains paramount for the world,” he com-
ern Trading to buy 2.6mn tpy of LNG from the mented. “The demand for LNG is set to continue
first two production trains of the Puerto Libertad to rise, with further LNG required to ensure
plant over a period of 20 years. security of supply and progress the energy tran-
MPL will deliver the LNG on a free on board sition. We look forward to continuing to work
(FOB) basis, the statement noted. with Mexico Pacific as they advance to bring
The LNG plant is due to begin operating in more LNG [production capacity] online.”
2026 and will process gas pumped from Per- According to previous reports, MPL has
mian basin fields in the US states of Texas and already signed binding off-take agreements for
New Mexico across the border into Mexico by 8mn tpy of LNG with several clients. One of
pipeline. It will eventually have three production these is Guangzhou Development Natural Gas
trains and a total production capacity of 14.1mn Trading, a subsidiary of China’s Guangzhou
tpy, Shell said. Development Group (GDG). The Chinese com-
Douglas Shanda, the president and CEO of pany agreed in April of this year to buy 2mn tpy
MPL, said the signing of the SPA would benefit over a period of 20 years.
all parties. “We are delighted to welcome Shell as MPL also hopes to make a final investment
a foundation customer at our anchor LNG facil- decision (FID) on the first two production trains
ity,” he said. “Their recognition of the advantages of its LNG plant in the third quarter of 2022 and
our location offers, including access to low-cost may begin construction soon afterwards.
Permian gas, avoidance of the Panama Canal to
Week 28 15•July•2022 www. NEWSBASE .com P13
