Mexico is planning to invest between $4bn and $5bn to build a liquefied natural gas (LNG) export hub in the Gulf of Mexico, reported Reuters, citing Mexican President Andres Manuel Lopez Obrador.

Planned to be built in the Port of Coatzacoalcos, in the eastern state of Veracruz, the proposed LNG facility will export gas via vessels to European nations seeking to secure alternative supplies to Russian fuel.

At a news conference, Obrador was quoted by the news agency as saying: “We’re about to promote private sector involvement, it’s going to be an investment of $4 to $5 billion this plant.”

Obrador previously proposed plans for an LNG plant in Coatzacoalcos, and other locations.

Mexico is said to be one of the top crude oil exporters in the region and does not export LNG on a commercial scale.

In August, Canadian firm TC Energy and Mexican state power utility Comision Federal de Electricidad (CFE) agreed to build a $4.5bn gas pipeline.

The pipeline is aimed to connect the Port of Tuxpan with Coatzacoalcos, and the ports of Veracruz and Dos Bocas.

Last month, Bloomberg News reported that oil major BP was looking to offload oil assets in Mexico, to shift its focus towards renewable energy in the country.

In partnerships with France’s TotalEnergies, Hokchi Energy, Equinor, Qatar Petroleum, and BP signed three exploration contracts six years ago.