Shell Eastern Trading has signed a 20-year LNG sales and purchase agreement with Mexico Pacific Limited.
The deal will see Mexico Pacific supply Shell with 1.1 million tonnes per annum of LNG from the third train of its anchor LNG facility, Saguaro Energia, located in Puerto Libertad, Mexico.
Once fully operational, the first phase of the facility will have three trains and a combined capacity of 14.1 million tonnes per annum.
Ivan Van der Walt, CEO of Mexico Pacific, said the project will provide Asia with low-cost Permian gas, avoiding the Panama Canal to ensure a shorter shipping distance to Asia, to achieve lower transportation emissions and landed pricing versus the US Gulf Coast.
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