Offtake deal bringing Mexican LNG to Oman

Amigo LNG, a Mexican subsidiary of Singapore’s LNG Alliance, has signed a binding heads of agreement (HOA) with OQ Trading (OQT), the trading arm of the national energy company of the Sultanate of Oman, to supply liquefied natural gas (LNG) from its liquefaction facility under development on Mexico’s west coast.

According to the Singaporean player, this milestone paves the way for the long-term supply of LNG from Amigo LNG, a liquefaction facility under development at Guaymas, Sonora, targeting the rapidly growing Asian market. Once constructed, the terminal is set to export 4.2 million tonnes per annum (mtpa) from the first train, with the potential to add a second 3.6-mtpa train.

Muthu Chezhian, CEO of LNG Alliance noted: “Securing the offtake agreement with a leading NOC partner like OQT strengthens our position as a reliable and responsible global energy provider. We are advancing rapidly in delivering the strategically located Amigo LNG project, expanding our portfolio of lower-carbon energy solutions to drive the energy transition, and we remain committed to supporting our customers and partners every step of the way.”

Feed gas for the proposed facility will be sourced from the Permian shale basin in the United States and transported to Mexico through existing pipeline networks. The new facility’s site is described as having adequate ocean frontage for marine infrastructure with deepwater access for berthing LNG ships with a capacity of up to 265,000 cubic meters. 

Wail Al Jamali, CEO of OQT, said: “We are pleased to enter into this HOA with a trusted project developer in Amigo LNG. The offtake represents a significant step in the growth of our LNG portfolio, allowing us to deliver LNG to our customers within the Asia Pacific region.”

Mexico has been bustling with LNG activity lately. Last month, a pair of Mexico-based developers sought a 20-year permit from the U.S. Department of Energy Office of Fossil Energy and Carbon Management (DOE-FECM) to export natural gas to Mexico via pipeline, turn it into LNG, and send it to free trade agreement (FTA) countries, but also the non-FTA ones.

Last week, New Fortress Energy received approval from DOE to export up to around 1.4 million tonnes per annum of LNG to non-FTA countries from its Fast LNG 1 (FLNG 1) unit for five years.

One project in the works is the small-scale liquefied natural gas (LNG) bunkering and transshipment terminal in Mexico’s Salina Cruz. The facility being developed by US players GFI LNG and Pilot LNG is expected to produce 600,000 gallons of LNG daily, or approximately 0.34 million metric tonnes per annum (mtpa), with operations scheduled to start in mid-to-late 2027.