ConocoPhillips Signs 20-Year LNG Supply Deals with Mexico Pacific

(Reuters) — ConocoPhillips has signed 20-year deals to receive a collective 2.2 million tons of LNG a year from Mexico Pacific's Saguaro export facility, the U.S. oil and gas producer said on Thursday.

The deals, which are subject to the project gaining a positive final investment decision, would grant Conoco access to LNG from Mexico's Pacific coast, the company said in a release.

Mexico Pacific last month announced a similar deal to supply 1 million metric tons of LNG a year to China's Zhejiang Energy.

The Saguaro facility will process low-cost gas from the Permian Basin bound for the Asian market through a significantly shorter shipping route avoiding the Panama Canal.

Mexico is expected to soon inaugurate the first of nine planned onshore and floating LNG production facilities both on the Gulf and Pacific coasts, which will process U.S. natural gas imported through a pipeline network between the two countries.

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