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The U.S. Federal Power Regulatory Fee (FERC) on Thursday permitted Oneok Inc.’s proposed 2.8 Bcf/d Saguaro Connector pure fuel pipeline, which might transport Permian Basin provide to the U.S.-Mexico border.
The pipeline would transport fuel to Mexico Pacific Ltd.’s Saguaro Energía LNG export plant envisioned for Puerto Libertad, Sonora, situated on the nation’s west coast.
The re-export route would enable entrepreneurs of U.S. fuel to bypass the Panama Canal, which means that liquefied pure fuel cargoes might attain the Asia Pacific market extra rapidly and cheaply.
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Mexico Pacific additionally has mentioned offtakers might index their provide agreements to the Waha hub in West Texas, which usually trades at a reduction to U.S. benchmark Henry Hub.
NGI’s Waha foundation for March pure fuel supply stood at minus 71.1 cents as of Thursday.
Mexico Pacific is aiming to take a closing funding determination this 12 months on the primary three trains, which might boast a mixed liquefaction capability of 15 million metric tons/12 months (mmty).
Mexico Pacific has secured approval from the U.S. Division of Power to export LNG to nations that do not need free commerce agreements (FTA) with the USA, an vital distinction amid the Biden administration’s pause on approvals for brand spanking new export tasks to non-FTA nations. Nevertheless, the export allow expires on the finish of 2025, which means Mexico Pacific could have to use for an extension with DOE.
Dedicated offtakers for Saguaro Energía embody ConocoPhillips, ExxonMobil, Shell plc and Woodside Power Group Ltd.
In Mexico, in the meantime, Mexico Pacific is advancing the two.8 Bcf/d Sierra Madre pipeline, which might transport provide from the border to the Saguaro facility. The agency just lately awarded an engineering, procurement and building contract for Sierra Madre to a three way partnership of Mexican building firm GDI Sicim Pipelines SA and oil and fuel providers agency Bonatti SpA.
Saguaro Energía is certainly one of eight LNG export tasks in various phases of improvement in Mexico that may largely use U.S. feed fuel. They embody Sempra’s Energía Costa Azul (ECA) Section 1 mission in Ensenada, Baja California, which is anticipated to start exporting fuel in 2025. ECA Section 1 additionally would re-export fuel from the USA to Asian markets.
Different tasks embody New Fortress Power Inc.’s 1.4 mmty Altamira floating terminal, which doesn’t but have DOE authorization for non-FTA exports.
The Worldwide Power Company is forecasting the worldwide LNG commerce to progress by about 3.5% or 18 billion cubic meters in 2024 versus 2023, following progress of solely 0.5% final 12 months.
Pure fuel demand progress “is anticipated to be concentrated in fast-growing markets in Asia Pacific and gas-rich nations in Africa and the Center East,” the worldwide vitality watchdog mentioned.
The publish U.S. Regulators Approve Saguaro Connector Linked to Mexico Pacific LNG Mission appeared first on Pure Fuel Intelligence
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