ExxonMobil LNG Asia Pacific (EMLAP) has signed a long-term sales and purchase agreement (SPA) with Mexico Pacific.
The agreement entails the supply of 1.2 million tonnes per annum (mtpa) of LNG from Train 3 of the Saguaro Energia project to EMLAP.
It also paves way for the FID to expand Mexico Pacific’s Saguaro Energia project.
Mexico Pacific said the volume is part of an option from separate LNG SPAs signed earlier in 2023, which covered volumes from Trains 1 and 2.
Under the terms of the Train 3 LNG SPA, EMLAP will buy LNG on a free-on-board basis for a period of 20 years.
Additionally, there is an option for another 1mtpa from Train 4.
Located in Puerto Libertad, Sonora, Mexico, the Saguaro Energía project is a 15mtpa LNG export facility that represents Mexico Pacific’s key project.
Mexico Pacific CEO Ivan Van der Walt said: “We are pleased to announce this additional long-term SPA with ExxonMobil, extending our much-valued partnership into Train 3. While we remain focused on initially taking FID on Trains 1 and 2, this latest LNG SPA with ExxonMobil concludes the LNG sales required for a subsequent Train 3 FID expected this year.
“With key contracting and permits in place across the terminal and pipeline, we are well positioned to sanction the project, connecting Permian Basin gas with the world’s largest LNG markets in Asia to provide reliable and cost-effective LNG to support the energy transition.”
ExxonMobil head of global LNG and senior vice-president Peter Clarke said: “Bringing additional North American LNG to global markets advances energy security and helps to lower emissions in many countries with high energy demand.
“Long-term contracts play an essential role in underpinning the investments that will be required to advance the energy transition. We look forward to working with Mexico Pacific to continue growing our portfolio and deliver Permian natural gas to global markets.”
Last month, Mexico Pacific signed a similar deal with Australian oil and gas producer Woodside.
