E&H ENERGY and LNG Alliance executives during the signing ceremony. Credit: E&H ENERGY and LNG Alliance/PRNewswire.

Amigo LNG, a subsidiary of Singapore-based LNG Alliance, has secured a long-term liquified natural gas (LNG) supply agreement with E&H ENERGY of Malaysia 

Starting in the third quarter of 2027, Mexico-based Amigo LNG will provide 3.6 million tonnes per annum (mtpa) of LNG to E&H for the Malaysian market over a period of 20 years. 

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Amigo LNG’s facility, with a total capacity of 7.8mtpa, is the only project in the region holding both Free Trade Agreement (FTA) and non-FTA permits from the US Department of Energy, which are valid until December 2027.  

The project is being developed in Sonora, Mexico, adjacent to the Port of Guaymas, in collaboration with the State of Sonora. 

As part of Sonora’s strategy to establish itself as a key player in near-shoring, maritime decarbonisation, and connectivity to Asian markets, Amigo LNG is positioned as a cornerstone project.  

The facility’s strategic location is said to allow for efficient Pacific shipping routes to Asia. 

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The Amigo LNG terminal will feature two liquefaction trains, with Train 1 having a capacity of around 4.2 mtpa and Train 2 capable of producing 3.6 mtpa.  

The feed gas for Amigo LNG will be sourced from the cost-effective Permian shale basins in the US, ensuring a reliable supply.  

It will operate on a tolling model, placing the responsibility of sourcing feed gas on the offtakers, which will then be processed into LNG for delivery. 

Production at the Amigo LNG facility is expected to commence in the second quarter of 2026. 

E&H executive director Dato’ Wan Adlil said: “This agreement is timely and aligns with the country’s direction towards gas market parity by 2027. E&H Energy aims to be a significant contributor in providing energy solutions to the country, particularly in the LNG and gas sectors in Peninsular Malaysia.” 

LNG Alliance CEO Muthu Chezhian said: “We are pleased to enter into this long-term agreement with E&H Energy. This partnership supports our strategy to focus on supplying the growing Southeast Asian LNG market and capitalises on the unique logistics solutions that Amigo provides, optimising shipping routes to the region.”