Mexico Pacific signs agreement with Korea’s POSCO International for LNG

Mexico Pacific signed a sales and purchase agreement with POSCO International Corporation, Korea’s largest energy trading company.

Through the agreement, POSCO will purchase 0.7 million tons per annum (mtpa) of LNG over a term of 20 years. Further, Mexico Pacific, which owns the Saguaro Energía LNG facility and associated Sierra Madre Pipeline, is evaluating additional opportunities to expand upon this partnership with POSCO.

When operational, the first phase of Mexico Pacific’s Saguaro Energía LNG facility in Puerto Libertad, Sonora, Mexico, will feature three liquefaction trains and associated infrastructure. The LNG facility will leverage low-cost natural gas from the Permian Basin in Texas, providing the lowest landed price of LNG into Asia globally. It will also position 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,” Sungbok Park, chief marketing officer of Mexico Pacific, said. “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.”

The Saguaro Energía LNG Facility is the most advanced LNG development project on the West Coast of North America. It will have the lowest 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.

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