Mexico Pacific pens LNG supply deal with South Korea’s POSCO International
Mexico Pacific, the owner of the 15mn tonnes/year Saguaro Energía LNG facility and the associated Sierra Madre Pipeline, announced on August 28 that it had signed an agreement to supply LNG to South Korea’s POSCO International Corporation.
Under the agreement, POSCO International will purchase 0.7mn tonnes/year of LNG on a free-on-board basis over a 20-year term.
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Mexico Pacific and POSCO International are exploring additional opportunities to expand their initial commercial partnership. South Korea has a robust trade relationship with Mexico and is one of the few major Asian economies that has a comprehensive free trade agreement (FTA) with the US.
Once operational, the first phase of Mexico Pacific’s Saguaro Energía LNG facility in Puerto Libertad, Sonora, Mexico, will consist of three liquefaction trains and associated infrastructure. The LNG facility will utilise natural gas from the Permian basin in Texas.
With three liquefaction trains already commercially contracted, along with strong support from governments and capital markets, and key federal, state, and municipal permits secured for both the Saguaro Energía LNG facility and the Sierra Madre Pipeline, Mexico Pacific is positioning the project for a positive final investment decision (FID), the company stated.