ExxonMobil in third SPA with Saguaro Energia LNG
US major ExxonMobil has signed a third long-term LNG sale and purchase agreement (SPA) for offtake from the third train of Mexico Pacific’s Saguaro Energia LNG project in Mexico, the LNG developer said January 16.
The agreement covers the purchase, on a free-on-board basis, of up to 1.2mn tonnes/year of LNG from the third train of the three-train, 15mn tonnes/year first phase of Saguaro Energia LNG, located on Mexico’s Pacific Coast at Puerto Libertad. It reflects an option acquired by ExxonMobil when it signed SPAs for 2mn tonnes/year from the first two trains in February 2023.
Other LNG supply deals for the first phase of Energia Saguaro have been struck with Shell, ConocoPhillips, Woodside and China’s Zhejiang Energy.
“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,” Mexico Pacific CEO Ivan Van der Walt said. “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.”
In November, Mexico Pacific awarded a lump-sum turnkey engineering, procurement and construction (EPC) contract to a joint venture of GDI Sicim Pipeline and Italy’s Bonatti for the 500-mile Sierra Madre pipeline that will deliver 2.8bn ft3/day of natural gas from the Permian Basin in the US to Energia Saguaro LNG.
Alongside the commercialisation of the first two trains at Energia Saguaro and Train 3 close to a final investment decision, Mexico Pacific has begun the development of an expansion at the terminal, which will add another three trains and an incremental 15mn tonnes/day of LNG capacity. ExxonMobil, as part of its Train 3 SPA, has acquired an option for 1mn tonnes/day from Train 4.
“Bringing additional North American LNG to global markets advances energy security and helps to lower emissions in many countries with high energy demand,” said Peter Clarke, ExxonMobil’s senior vice president and head of its global LNG division. “Long term contracts play an essential role in underpinning the investments that will be required to advance the energy transition.”