August 28, 2024 06:00 PM Eastern Daylight Time
HOUSTON & INCHEON, South Korea–(BUSINESS WIRE)–Mexico Pacific, owner of the Saguaro Energía LNG facility and associated Sierra Madre Pipeline, today announced that it has signed a sales and purchase agreement (SPA) with POSCO International Corporation (POSCO International), Korea’s largest energy trading company and a global leader in the pursuit of a sustainable future.
Pursuant to the SPA, POSCO International will purchase 0.7 million tonnes per annum (mtpa) of LNG on a free-on-board basis over a term of 20 years. Mexico Pacific and POSCO International are evaluating additional opportunities to expand upon this initial commercial partnership. Korea has a robust trade relationship with Mexico and is one of the only major economies in Asia that has a comprehensive free trade agreement (FTA) with the United States.
Through further engineering in collaboration with its EPC contractors, Mexico Pacific has achieved significant optimization outcomes this year, unlocking incremental LNG volumes that are financeable across global debt markets. When operational, the first phase of Mexico Pacific’s Saguaro Energía LNG facility in Puerto Libertad, Sonora, Mexico, will comprise three liquefaction trains and associated infrastructure. The LNG facility will leverage abundant, low-cost natural gas from the Permian Basin in Texas, providing the lowest landed price of LNG into Asia, satisfying the world’s growing energy needs and positioning Mexico as the world’s fourth largest exporter of LNG.
“We are delighted to welcome POSCO International as a foundation customer, further validating the strategic value of west coast North American LNG for Korea, one of the world’s largest LNG importing markets,” said Sungbok Park, Chief Marketing Officer of Mexico Pacific. “We look forward to a lasting fruitful partnership with POSCO International and to delivering world-class infrastructure that strengthens global energy security, reduces emissions, and improves the lives of millions of people around the world.”
With three liquefaction trains commercially contracted, strong support from governments and capital markets, and key federal, state, and municipal permits in place across the Saguaro Energía LNG facility and the Sierra Madre Pipeline, Mexico Pacific is positioning the project for a positive final investment decision (FID). Together, these developments comprise the largest private investment in Mexico and a foundational pillar of the Sonora Plan that promotes clean energy development, investment, and economic prosperity for the region.
About Mexico Pacific
Mexico Pacific’s anchor project, the 15 mtpa Saguaro Energía LNG Facility, is the most advanced LNG development project on the West Coast of North America. The Saguaro Energía LNG Facility achieves significant cost and logistical advantages resulting in the lowest landed price of North American LNG into Asia by leveraging low-cost natural gas sourced from the nearby Permian Basin and a significantly shorter shipping route avoiding Panama Canal transit risk. More information is available at http://www.mexicopacific.com.
About POSCO International
POSCO International Corporation is one of Korea’s leading companies and is engaged in energy, infrastructure development, and the trading of energy, steel, chemical, agriculture, and electronic and automobile products. POSCO International was founded in 1967 and is headquartered in Incheon. More information is available at https://poscointl.com/index.html.
Contacts
Allison Clark
Director, Communications & Branding
[email protected]
+1-713-427-2764