Mexico Pacific and Woodside signal long-term LNG SPA

Underneath the SPA, Woodside will buy the LNG on a free-on-board foundation over a time period of 20 years from the proposed third prepare of Mexico Pacific’s Saguaro Energia LNG Challenge with pricing linked to US gasoline indices. The SPA is topic to Mexico Pacific taking a last funding resolution (FID) on the proposed third prepare on the Saguaro Energia LNG Challenge, which is predicted in 1H24.

The Saguaro Energia LNG Challenge leverages low value Permian Basin pure gasoline within the US and a Pacific Basin going through liquefaction web site to ship extra value environment friendly LNG for provide into the world’s largest LNG market, Asia, with out threat of the Panama Canal.

Woodside CEO, Meg O’Neill, mentioned: “As we ship on our technique, we intention to enrich Woodside’s produced LNG provide with third events’ volumes, giving us higher scale and portfolio flexibility to serve our clients, whereas optimising our LNG buying and selling actions.

“This settlement with Mexico Pacific delivers a brand new supply of LNG into our buying and selling portfolio, expands our geographic diversification within the Pacific Basin and builds on our presence in Mexico.

“The Saguaro Energia LNG Challenge is situated on Mexico’s Pacific coast, offering proximity to key markets in Asia,” she mentioned.

“We’re delighted to welcome Woodside, one of the crucial established international LNG market members, as a basis buyer of Prepare 3, additional validating the worth of west coast Mexican LNG,” added Sarah Bairstow, President of Mexico Pacific. “We stay up for persevering with our collaborative relationship with Woodside to deliver further provide on-line to deal with crucial power safety and power transition wants.”

Learn the article on-line at: https://www.lngindustry.com/liquid-natural-gas/07122023/mexico-pacific-and-woodside-sign-long-term-lng-spa/