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Shell signs 20-year LNG supply

deal with MPL plant in Sonora

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

TRINIDAD AND TOBAGO
Trinidad and Tobago launches new bidding

round for 11 onshore and coastal blocks

TRINIDAD and Tobago’s Ministry of Energy In a statement, the ministry explained that
and Energy Industries announced this week it had begun accepting offers for the blocks and
that it had launched a new licensing round that that bidding would remain open until January
covers 11 onshore and coastal blocks. 9, 2023.

P6 www. NEWSBASE .com Week 28 14•July•2022