Mexico Pacific Ltd. expects to take an imminent final investment decision (FID) for the first two trains related to its Saguaro Energía LNG facility on the west coast of Mexico, the company told Hart Energy on April 4. An FID for a third train is expected soon thereafter.
Saguaro, located in Puerto Libertad, Sonora, Mexico, will source feed gas from the Permian Basin to later be shipped into premium LNG markets in Asia.
“We’re sold out across all three trains, fully permitted to commence construction on both the pipeline and terminal and are receiving strong support from capital markets so we’re progressing strongly toward our initial T1 & T2 FID and expect to take a subsequent T3 FID a mere 3-6 months later,” Mexico Pacific told Hart.
Last year, Mexico Pacific said the initial phase of the three-train export project, Saguaro I, would entail a $15 billion investment. Each train will have a processing capacity of 5 million tonnes per annum (mtpa). Considering all three trains, Saguaro I will have a 15 mtpa capacity or roughly 2 Bcf/d. The company didn’t provide Hart with updated investment details.
An envisioned Saguaro II would include three additional trains with 5 mtpa of capacity each, according to Mexico Pacific.
Exxon Mobil, Shell Plc and ConocoPhillips all have offtake deals with Mexico Pacific, which is controlled and sponsored by Quantum Capital Group.
Recommended Reading
NOG Closes Utica Shale, Delaware Basin Acquisitions
2024-02-05 - Northern Oil and Gas’ Utica deal marks the entry of the non-op E&P in the shale play while it’s Delaware Basin acquisition extends its footprint in the Permian.
Vital Energy Again Ups Interest in Acquired Permian Assets
2024-02-06 - Vital Energy added even more working interests in Permian Basin assets acquired from Henry Energy LP last year at a purchase price discounted versus recent deals, an analyst said.
California Resources Corp., Aera Energy to Combine in $2.1B Merger
2024-02-07 - The announced combination between California Resources and Aera Energy comes one year after Exxon and Shell closed the sale of Aera to a German asset manager for $4 billion.
DXP Enterprises Buys Water Service Company Kappe Associates
2024-02-06 - DXP Enterprise’s purchase of Kappe, a water and wastewater company, adds scale to DXP’s national water management profile.
Tellurian Exploring Sale of Upstream Haynesville Shale Assets
2024-02-06 - Tellurian, which in November raised doubts about its ability to continue as a going concern, said cash from a divestiture would be used to pay off debt and finance the company’s Driftwood LNG project.