Shell Eastern Trading (Pte) Ltd and a subsidiary of Mexico Pacific Limited have signed an additional sales and purchase agreement for Shell to offtake approximately 1.1m tonnes per year (MTPA) of liquefied natural gas (LNG) from the third train of Mexico Pacific’s anchor LNG export facility, Saguaro Energia, located in Puerto Libertad, Sonora, Mexico.
Under the agreement, Shell will purchase LNG on a free on-board basis over a term of 20 years. When fully operational, the first phase of the facility will have three trains and a combined capacity of 14.1 MTPA.
“We are delighted Shell has chosen to grow with us, building upon their initial 2.6 MTPA commitment from train 1 and train 2, to also underpin more than 20% of train 3 capacity,” said Ivan Van der Walt, CEO of Mexico Pacific. “Our project will provide Asia with low-cost Permian gas, avoiding the Panama Canal to ensure a shorter shipping distance to Asia, to achieve lower transportation emissions and landed pricing vs. the US Gulf Coast. As we work to deliver a final investment decision (FID) on the first two trains, we are also closing out contracting across the significant commercial momentum in place for train 3 to ensure that a subsequent train 3 FID can follow as quickly as possible.”
