Mexico Pacific has signed a 20-year liquefied natural gas (LNG) sales and purchase agreement with Kora’s largest energy trading company, POSCO International.
The cross-border agreement will see Mexico Pacific supply POSCO with 0.7 million tonnes per annum on a free-on-board basis from its Saguaro Energía LNG facility.
Located in Puerto Libertad, Mexico Pacific’s Saguaro Energía LNG facility is a 15 million tonnes per annum project. The project is expected to become operational by 2029.
With three liquefaction trains commercially contracted, strong support, 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).
The LNG facility will utilise natural gas from the Permian Basin in Texas to provide lower-cost LNG for Asia, positioning Mexico as the world’s fourth largest exporter of LNG.
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 US.
Sungbok Park, CEO of Mexico Pacific, said the deal further validates the strategic value of Westcoast North American LNG for Korea, one of the world’s largest LNG importing markets.
He added, “We look forward to a lasting fruitful partnership with POSCO International and to delivering infrastructure that strengthens global energy security, reduces emissions, and improves the lives of millions of people around the world.”
Last month (July 2024), POSCO completed construction the first LNG terminal of its Gwangyang LNG project. The work took 22 years and represented an investment of $1.09bn.
Read more: POSCO completes 22-year LNG terminal project
The terminal provides natural gas for power generation and manufacturing in Korea’s key industries and offers services for unloading, storing, regasifying, and discharging natural gas directly imported by client companies such as POSCO, S-OIL, and SK E&S.
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