Exxon Mobil and Mexico Pacific Strike 20-Year LNG Deal
On Tuesday, energy company Mexico Pacific announced a significant milestone in its partnership with Exxon Mobil (NYSE:XOM) with the finalization of a 20-year agreement. Under the terms of the deal, Exxon Mobil will supply an additional 1.2 million metric tons of liquefied natural gas annually to Mexico Pacific. This collaborative effort paves the way for the expansion of Mexico Pacific’s Saguaro Energia LNG plant on the west coast of Mexico.
The agreement marks a crucial step for Mexico Pacific as it solidifies the necessary sales commitments required to proceed with the final investment decision for the construction of the project’s third train, anticipated to occur later this year.
This recent deal serves as an extension of the initial agreement between Mexico Pacific and Exxon Mobil, which was reached nearly a year ago. In that earlier arrangement, Exxon Mobil committed to purchasing approximately 2 million tons of LNG annually from the first two trains of the Saguaro Energia LNG facility.
The ambitious $15 billion Saguaro Energia project aims to export 15 million metric tons of LNG per year to the Asian market, leveraging natural gas sourced from the U.S. Permian Basin.
