US oil and gas company ConocoPhillips has signed a long-term liquefied natural gas (LNG) supply agreement with Mexico Pacific.
As per the agreement, ConocoPhillips will purchase around 2.2 million tonnes per annum (mtpa) from Mexico Pacific’s Saguaro Energia LNG facility on a free-on-board basis over 20 years.
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The Saguaro Energia LNG facility is located in Puerto Libertad, Sonora, Mexico.
The facility’s first phase will feature three trains with a combined capacity of 15mtpa when it is completely operational.
Mexico Pacific is yet to make a final investment decision (FID) for the Saguaro Energia facility.
Mexico Pacific CEO Ivan Van der Walt said: “While our sales volumes exceed our Train 1 and 2 FID requirements, we are excited to move into oversubscribed territory with one of the strongest Permian Basin and LNG market participants in the market – a validation of our project’s fundamentals and position.
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By GlobalData“We look forward to continuing the collaborative relationship we have with ConocoPhillips as we focus on delivering a final investment decision (FID) on our first two trains with Train 3 to follow shortly thereafter.”
ConocoPhillips executive vice president and chief financial officer Bill Bullock said: “ConocoPhillips is excited to pursue this opportunity with Mexico Pacific as we continue to focus on LNG market development to meet growing global natural gas demand.
“Expanding our LNG footprint with agreements like this further enhances a balanced, diversified, and attractive portfolio as we progress our global LNG strategy.”
The agreement with ConocoPhillips comes close on the heels of Mexico Pacific’s agreement for the Saguaro Energia project with the local government.
Similar LNG supply deals for the facility have been signed with China’s Zhejiang Energy International and Exxon Mobil.
