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Chihuahua Authorities Backs Mexico Pacific’s Proposed 2.8 Bcf/d Sierra Madre Pure Gasoline Pipeline

by manusohal
November 23, 2023
in News
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Chihuahua Authorities Backs Mexico Pacific’s Proposed 2.8 Bcf/d Sierra Madre Pure Gasoline Pipeline
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Mexico Pacific Ltd. LLC has reached an settlement with the federal government of Chihuahua state to facilitate growth of the proposed 2.8 Bcf/d Sierra Madre pure gasoline pipeline.

Sierra Madre would provide Permian Basin gasoline from the U.S. border throughout the states of Chihuahua and Sonora to Mexico Pacific’s proposed Saguaro Energía LNG export terminal envisioned for Puerto Libertad on the Sonoran coast.

Underneath the settlement, “the federal government of Chihuahua will proceed to pave an environment friendly path for the graduation of building of this historic venture within the coming months, marking yet one more important milestone within the development of vitality infrastructure for the state,” Mexico Pacific stated. 

[Want to know how global LNG demand impacts North American fundamentals? To find out, subscribe to LNG Insight.]

Mexico Pacific has but to succeed in a remaining funding determination (FID) on Saguaro Energía. Nonetheless, it has secured offtake commitments from counterparties together with ConocoPhillips, Shell plc and China’s Zhejiang Power Worldwide Ltd.

The venture’s first three trains, if sanctioned, would have a mixed liquefaction capability of 14.1 million metric tons/12 months (mmty) or 1.86 Bcf/d.

Chihuahua’s authorities has dedicated “to help Mexico Pacific in areas of mutual curiosity referring to the development and operation of pipeline infrastructure in Chihuahua,” the agency stated. “These embody logistics, building, expertise, safety, and group engagement,”

Mexico Pacific CEO Ivan Van der Walt stated. “The state of Chihuahua has a talented workforce and holds a promising future as a middle of nearshoring excellence for cleaner vitality and main capital tasks. We’re proud to have consciously designed our pipeline to keep away from environmentally delicate areas, indigenous communities, and inhabitants facilities, a primary for pipeline growth in Mexico, demonstrating the flexibility for funding to co-exist with, and earn the belief and help of, the federal government and key stakeholders.”

Assist from Chihuahua Gov. Maru Campos, together with state and municipal leaders alongside the deliberate pipeline route, “exhibit the significance of Mexico Pacific’s funding within the state,” the corporate stated. “Comprising a key a part of the broader LNG venture, the Sierra Madre Pipeline will carry employment alternatives, infrastructure growth, group enchancment, and financial development to Chihuahua and the nation whereas positioning Mexico because the fourth-largest LNG exporting nation worldwide, considerably contributing to international vitality safety.”

Mexico doesn’t presently export liquefied pure gasoline. Nonetheless, a number of tasks are deliberate, with the purpose of re-exporting pipeline gasoline imported from the US.

Sempra’s roughly 3 mmty Energía Costa Azul (ECA) Section 1 and New Fortress Power Inc.’s 1.4 mmty Altamira Quick LNG venture are probably the most superior, and the one ones to have begun building.

On the U.S. aspect of the border, Oneok Inc. is awaiting the Saguaro Energía FID with a purpose to proceed with the two.8 Bcf/d Saguaro Connector pipeline, which might join the Waha hub in West Texas with MPL’s pipeline in Mexico.

“We see Mexico because the rising LNG powerhouse in Latin America,” Poten & Companions Inc.’s Sergio Chapa, senior LNG analyst, stated this week through the US-Mexico Pure Gasoline Discussion board in San Antonio, TX. He highlighted that along with ECA Section 1 and Altamira, there are eight LNG export tasks totaling 50.2 mmty proposed in Mexico. Because of this, Mexico may change into Latin America’s largest LNG exporter, Chapa stated. Trinidad and Tobago presently holds that title, adopted by Peru.

Talking on the similar occasion, Power and Infrastructure Advisors’ Guillermo Turrent, normal supervisor, stated Mexico Pacific is more likely to face difficulties finishing a brand new pipeline to Puerto Libertad, as a consequence of a historical past of opposition to pipelines in northwestern Mexico.

The submit Chihuahua Authorities Backs Mexico Pacific’s Proposed 2.8 Bcf/d Sierra Madre Pure Gasoline Pipeline appeared first on Pure Gasoline Intelligence

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