off-the-wire

UPDATE 1-Mexico Pacific to sell LNG from Sonora export plant to Exxon Mobil

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Adds details) Feb 7 (Reuters) - Mexico Pacific said on Tuesday that a unit of Exxon Mobil Corp had agreed to buy liquefied natural gas from the Mexican company's proposed Saguaro Energia LNG export plant in Sonora state. Mexico Pacific said in a news release that ExxonMobil will buy about 2 million tonnes per annum (MTPA) of LNG from the first two trains to be built at the Saguaro Energia plant in Puerto Libertad over a 20-year term.


Mexico Pacific also said ExxonMobil has an option for 1 MTPA from Train 3 at the plant.


One MTPA of LNG is about the same as 0.13 billion cubic feet per day of natural gas.


"We have reached a critical point on contract volumes required for FID (final investment decision) on our first two trains and will now shift focus to close contracting on the significant commercial momentum in place for a subsequent Train 3 FID," Mexico Pacific Chief Executive Officer Ivan Van der Walt said in the release.


"As we position for FID on the first two trains, we will also commence advanced engineering with Bechtel," Van der Walt said. Bechtel is a U.S. engineering and construction firm.


The proposed three-train Saguaro Energia LNG facility is designed to produce about 14.1 MTPA of LNG from natural gas sourced from the Permian Basin in Texas and New Mexico.


"We look forward to working with Mexico Pacific to continue growing ExxonMobil's LNG portfolio and deliver Permian natural gas to global markets," said Peter Clarke, senior vice president of LNG for ExxonMobil Upstream Co.
(Reporting by Scott DiSavino; Editing by Paul Simao)

Messaging: scott.disavino.thomsonreuters.com@reuters.net))
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