Page 8 - GLNG Week 12 2023

GLNG AMERICAS GLNG

Shell signs third supply deal with MPL

for supplies from Saguaro Energia

MEXICO SHELL Eastern Trading, a subsidiary of the final investment decision (FID) on the first two
super-major Shell (UK), has signed a 20-year trains, we are also closing out contracting across
A subsidiary of Shell LNG supply contract with Mexico Pacific Ltd the significant commercial momentum in place
(UK) has signed a (MPL), the developer of the Saguaro Energia for Train 3 to ensure that a subsequent Train 3
20-year LNG supply export project. FID can follow as quickly as possible.”
contract with Mexico Under the agreement, Shell Eastern Trad- Chuck Davidson, MPL’s chairman and a
Pacific Ltd (MPL), the ing will purchase 1.1mn tonnes per year (tpy) partner at Quantum Energy Partners, spoke
developer of Saguaro of LNG per year from the third train of MPL’s similarly: “Mexico Pacific is uniquely facilitat-
Energia. anchor facility, Saguaro Energia, which is slated ing the connection of low-cost Permian Basin
for construction in Puerto Libertad in the state of gas with the lower carbon fuel needs of Asia to
Sonora. It will buy these volumes from a unit of deliver de-risked and affordable new LNG sup-
MPL on a free on board (FOB) basis, according ply, resulting in additional energy security for the
to a company statement dated March 27. region,” he commented. “We are pleased to have
This is the third time the two firms have the ongoing support of Shell, one of the largest
signed a deal, MPL noted in its statement. Last market participants, to underpin investment in
July, the parties concluded two 20-year agree- critically needed new supply.”
ments for the delivery of 2.6mn tonnes per year For his part, Steve Hill, executive VP of
(tpy) of LNG from each of the first two trains of energy marketing at Shell, described Saguaro
the natural gas liquefaction plant. Energia as a welcome addition to the global gas
According to previous reports, the Saguaro market. “LNG is an increasingly important pillar
Energia plant is due to begin operating in 2026 of global energy security,” he remarked. “Invest-
and will process gas piped from Permian basin ment in liquefaction projects is needed to avoid
fields in the US states of Texas and New Mexico a supply-demand gap that is expected to emerge
across the border into Mexico. It will eventually in the late 2020s. We are pleased to be working
have three production trains of 4.7mn tpy each, with Mexico Pacific to provide more LNG to the
giving it a total production capacity of 14.1mn global market.”
tpy. MPL has already signed separate binding
Ivan Van der Walt, CEO of MPL, said: “We off-take agreements for 8mn tpy of LNG with
are delighted Shell has chosen to grow with us, several other clients. One of these is Guangzhou
building upon their initial 2.6mn tpy commit- Development Natural Gas Trading, a subsidi-
ment from Train 1 and Train 2 to also underpin ary of China’s Guangzhou Development Group
more than 20% of Train 3 capacity. Our project (GDG). The Chinese company agreed in April
will provide Asia with low-cost Permian gas, 2022 to buy 2mn tpy over a 20-year period.
avoiding the Panama Canal to ensure a shorter Another is ExxonMobil LNG Asia Pacific, a unit
shipping distance to Asia, to achieve lower of the US super-major ExxonMobil, which will
transportation emissions and landed pricing purchase a combined 2mn tpy on an FOB basis
vs. the US Gulf Coast. As we work to deliver a from the first two trains of Saguaro Energia. ™

P8 www. NEWSBASE .com Week 13 30•March•2023