Mexico Pacific signs LNG supply deal with Woodside

Mexico Pacific Ltd. has agreed to supply 1.3 million tonnes/year (tpy) of LNG, equivalent to about 18 cargoes/year, to Woodside for 20 years.

With the agreement, Woodside adds a new source of LNG into its trading portfolio, complementing Woodside’s produced LNG supply, and allowing greater scale and portfolio flexibility, Woodside’s chief executive officer Meg O’Neill said in a release Dec. 5.

Further, she said, the agreement expands Woodside’s geographic diversification in the Pacific basin, builds on the company’s presence in Mexico, and offers proximity to markets in Asia.

Mexico Pacific will supply the LNG from the Saguaro Energia LNG project in Puerto Libertad, Sonora, Mexico, on a free-on-board basis with pricing linked to US gas indices.

The agreement is subject to Mexico Pacific taking a final investment decision (FID) on the proposed third train at the Saguaro Energia LNG project, which the company expects to occur in first-half 2024. Commercial operations are targeted to begin in 2029.