Mexico Pacific, owner of the Saguaro Energía LNG plant and associated Sierra Madre pipeline, signed a 20-year deal to supply LNG to Korea's POSCO International Corp.
POSCO International will purchase 0.7 million tonnes/year (tpy) of LNG on a free-on-board basis. The companies are evaluating additional opportunities to expand upon the deal, Mexico Pacific said in a release Aug. 28.
The 500-mile, 48-in OD Sierra Madre pipeline will be utilized as the primary natural gas supply path for transportation of up to 2.8 bcfd of natural gas from the US border to the first phase of Mexico Pacific’s 15 million tonne/year (tpy) Saguaro Energia LNG plant on the West Coast in Puerto Libertad, Sonora. The first phase will comprise three liquefaction trains and associated infrastructure and receive natural gas from the Permian basin.
The project remains subject to a positive final investment decision (FID).