Natural gas from the U.S. Permian Basin is set to be the primary source for Mexico's Pacific's Saguaro Energía LNG facility.
Located in Puerto Libertad, Sonora, the Saguaro Energía LNG export facility will feature three processing trains. The site is primed for potential expansion with plans for three additional trains of similar capacity. Its strategic Pacific Coast location offers a 55% shorter shipping route to Asia, providing significant savings and reduced carbon emissions.
- The facility will have three trains, each having a processing capacity of 5 million tonnes per annum (mtpa). Combined, they offer a nameplate capacity of 15 mtpa, equivalent to 2 Bcf/d.
- Plans are in place to add three more trains, each with a capacity of 5 mtpa.
- The facility will utilize low-cost gas from the Permian Basin, specifically from the Waha hub.
- Gas will be transported via a 253 km pipeline in the U.S. that connects to an 802 km pipeline in Mexico. Both pipelines can handle up to 2.8 Bcf/d of gas.
“The facility will connect the cheapest natural gas from the Permian Basin's Waha hub to the world's largest demand center, Asia,” Kruse said during a panel discussion at Hart Energy's Energy Capital Conference.
Economic Implications
Tyler Kruse, Vice President of Corporate Finance at Mexico Pacific Ltd., emphasized the advantages of sourcing cheaper natural gas from the Permian Basin's Waha hub. Stifel Financial Corporation projects an 8% LNG growth by the decade's end, underscoring the project's potential.
The Mexican government is in favor of the development of the LNG infrastructure. While concerns about drug cartels have been addressed, they are not deemed a major threat.
Investment & Partnerships
A final investment decision on the Saguaro Energía LNG facility is forthcoming, with operations anticipated to commence by 2027. Major energy players, including Shell, Exxon Mobil, and ConocoPhillips, support the facility. Contracted clientele includes Guangzhou Gas and Zhejiang Energy from China.
About Mexico Pacific LNG Terminal:
Mexico Pacific's Saguaro Energía LNG facility aims to bridge the supply-demand gap in the global LNG market. Located strategically, it ensures efficient transportation, tapping into the vast reserves of the Permian Basin. Their commitment to sustainability is evident with the reduced carbon footprint they offer compared to their Gulf Coast counterparts. The involvement of energy giants like Shell and Exxon Mobil further underscores the facility's significance in reshaping the global energy landscape.
