Energy major Shell Eastern Trading (Shell) and a subsidiary of Mexico Pacific have signed a 20-year sales and purchase agreement for Shell to offtake approximately 1.1 million tonnes per year (MTPA) of liquefied natural gas (LNG) from the third train of Mexico Pacific’s anchor LNG export facility, Saguaro Energia, located in Puerto Libertad, Sonora, Mexico, reports Offshore Energy.
Long-term LNG sales and purchase agreement
Saguaro Energia LNG facility consists of three trains in the first phase with a capacity of 14.1 MTPA, and according to the Mexico Pacific, it has significant cost and logistical advantages, including the lowest landed price of North American LNG into Asia, leveraging low-cost natural gas sourced from the nearby Permian Basin, and a significantly shorter shipping route that avoids Panama Canal transit for Asian markets.
Shell led the global long-term liquefied natural gas (LNG) import contract volumes signed by key purchasing companies in 2022, with a contracted capacity of 6.7 MTPA, data and analytics company GlobalData found in its report.
The biggest long-term contract signed was with Mexico Pacific in 2022 when the two parties signed an agreement for Shell to offtake 2.6 MTPA of LNG from the first two trains.
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Source: Offshore Energy
