GFI LNG and Pilot LNG Partner to Develop LNG Bunkering

Overview of the Joint Venture

US-based energy company GFI LNG and infrastructure developer Pilot LNG have formed a joint venture to develop, construct, and operate an LNG bunkering and transshipment terminal in Salinas del Márquez, Salina Cruz, located in Oaxaca state, Mexico.

Strategic Location and Market Impact

The terminal’s strategic location on the Pacific side of the Panama Canal positions it ideally to serve North and Central American bunker and fuel markets. This makes it a key player in the LNG supply chain for the region.

Project Specifications and Timeline

The facility is designed to produce 2.3 million liters (600,000 gallons) of LNG per day, equivalent to approximately 0.34 million tonnes per annum. Operations are slated to commence between mid and late 2027.

Technical Aspects and Infrastructure

The project will feature modular, land-based liquefaction equipment and an optimized storage solution, including a floating storage unit (FSU) with a capacity ranging from 50,000 to 140,000 cubic meters. The FSU will be moored within the newly expanded breakwater at the Port of Salina Cruz.

Utilization of Domestic Resources and Target Markets

Salina Cruz LNG will leverage domestic Mexican gas supplies from the Veracruz Gulf region to access new high-value markets along the Pacific Coast. Target markets include LNG marine fuel deliveries at the Pacific entrance of the Panama Canal, ports in Southern California, Central America’s power markets, and local distribution via truck in southwestern Mexico.

Community and Economic Impact

According to a GFI spokesperson, the infrastructure in Salina Cruz will not only cater to markets seeking cleaner fuel alternatives but also contribute significantly to local community investments in the region.