Daily Newsletter

06 December 2023

Daily Newsletter

06 December 2023

Woodside and Mexico Pacific sign LNG supply agreement

Woodside will purchase 1.3 million tonnes per annum of liquefied natural gas (LNG) from Mexico Pacific's Saguaro Energia LNG project.

Archana Rani December 06 2023

Australian oil and gas producer Woodside has signed a long-term agreement to purchase LNG from Mexico Pacific.

Under the sales and purchase agreement (SPA), Woodside will purchase 1.3 million tonnes per annum (mtpa) of LNG, equivalent to approximately 18 cargoes per year, for a period of 20 years.

The LNG will be purchased from Mexico Pacific's Saguaro Energia LNG project in Sonora, Mexico, on a free-on-board basis with pricing linked to gas indices in the US.

Woodside CEO Meg O’Neill said: “As we deliver on our strategy, we aim to complement Woodside’s produced LNG supply with third parties’ volumes, giving us greater scale and portfolio flexibility to serve our customers, while optimising our LNG trading activities.

“This agreement with Mexico Pacific delivers a new source of LNG into our trading portfolio, expands our geographic diversification in the Pacific Basin and builds on our presence in Mexico.

“Mexico Pacific’s Saguaro Energia LNG Project is located on the Pacific coast of Mexico, providing proximity to key markets in Asia.”

The SPA is subject to final investment decision (FID) on the third train at the Saguaro Energia LNG Project by Mexico Pacific.

Mexico Pacific expects to take FID in the first half of 2024, with plans to start commercial operations in 2029.

Mexico Pacific president Sarah Bairstow said: “We are delighted to welcome Woodside, one of the most established global LNG market participants, as a foundation customer of Train 3, further validating the value of west coast Mexican LNG.”

In July 2023, Mexico Pacific signed a 20-year LNG supply agreement with China’s Zhejiang Energy International.

The Saguaro Energia LNG facility will have a production capacity of 15mtpa. It is due to be completed in 2026.

ESG 2.0 will be less forgiving of poor ESG performers

While ESG 1.0 was driven by voluntary corporate action, ESG 2.0 is being driven by a new wave of government policies. A host of new environmental laws are in the pipeline, relating to mandatory reporting, carbon pricing, and carbon import tariffs, as well as more state support and investment in clean energy technologies. Companies unprepared for ESG 2.0 face higher costs and lost sales.

Ammonia and Methanol in Energy Transition

Ammonia and methanol are key industrial chemicals with strong demand in the agriculture, manufacturing, and construction sectors. The demand for these chemicals is expected to rise in the coming years due to their potential applications in energy transition. Low-carbon ammonia is garnering the most attention from oil and gas industry players with nearly 300 plants in development globally.

Newsletters by sectors

close

Sign up to the newsletter: In Brief

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Thank you for subscribing

View all newsletters from across the GlobalData Media network.

close