20-year LNG offtake deal set to lend a hand in cinching Asia’s energy security

Amigo LNG, a Mexican subsidiary of Singapore’s LNG Alliance, has secured a multi-year sales and purchase agreement (SPA) with Sahara Group, an energy and infrastructure conglomerate, for the supply of liquefied natural gas (LNG) from its liquefaction facility under development on Mexico’s West Coast, which is seen as a way to bolster global energy access and security of supply, primarily in Asia.

The duo’s 20-year LNG SPA is perceived to be a significant step toward enhancing global efforts aimed at driving seamless energy access and security, as the deal allows Sahara to buy 0.6 million tons per year (mtpa) of LNG from Amigo LNG’s export terminal in Guaymas, Sonora, Mexico.

Wale Ajibade, Executive Director at Sahara Group, commented: “This agreement aligns perfectly with our goal to increase access to reliable and affordable energy, particularly in underserved regions. LNG is a critical enabler of energy security and economic growth, and we look forward to supporting a cleaner energy future together.”

According to Sahara Group, its offtake from Amigo LNG is anticipated to play “a critical role” in enhancing energy security for Asia over the next decade, as the region navigates increasing energy demand, supply diversification challenges, and efforts to reduce coal dependency. During this time, Amigo LNG is perceived to provide “a stable, geopolitically neutral, and cost-competitive supply route.”

Kola Motajo, Director of Sahara Group, underlined: “It is imperative that all stakeholders explore several collaborative avenues to enhance energy access. Sahara Group is unwavering in its dedication to promote sustainable development through investments and partnerships that will help accelerate energy security across the globe.”

Furthermore, this long-term partnership is described as “a major milestone in the ongoing global transition to cleaner energy,” since the agreement secures a reliable LNG supply from Mexico’s West Coast, said to be strategically positioned for efficient delivery to fast-growing markets across the Asia-Pacific and Latin America.

Muthu Chezhian, CEO of LNG Alliance, stated: “This agreement with Sahara Group reflects our shared commitment to accelerating the global shift toward cleaner, more sustainable energy. As one of the first large-scale LNG export projects on Mexico’s west coast, Amigo LNG will not only help meet rising energy demand in key global markets but also serve as a catalyst for economic development and regional energy integration.”

The LNG deliveries are set to begin in the third quarter of 2028. Amigo LNG’s 7.8 mtpa export facility, which entails two trains of 3.9 mtpa each, is currently under development in close cooperation with the State of Sonora and Secretaría de Marina.

Located near the Port of Guaymas, the project is deemed to play a central role in Plan Sonora—Mexico’s national initiative to promote near-shoring, maritime decarbonization, and trans-Pacific energy connectivity.

The deal with Sahara follows Amigo LNG’s binding heads of agreement (HOA) for LNG offtake with Oman’s OQ Trading (OQT). The feed gas for the proposed facility is expected to be sourced from America’s Permian shale basin and transported to Mexico through existing pipeline networks.