Mexico Pacific Signs 20-Year LNG Supply Deal with China's Zhejiang Energy
(Reuters) — Mexico Pacific Ltd has struck a 20-year deal to sell 1 million tons of LNG a year from its Saguaro Energia export plant in Sonora state to China's Zhejiang Energy, it said on Wednesday.
Mexico Pacific CEO Ivan Van der Walt said in the company's news release that LNG was "an important pillar" to China's energy security needs.
"Zhejiang Energy is the sole gas distributor in Zhejiang province, one of the largest provincial economies in China," he said. "Under this new agreement, Mexico Pacific will further support the growing energy requirements of this region."
Mexico Pacific did not specify when the contract would start, or the pricing of the deal.
Zhejiang Provincial Energy Group is one of China's so-called "second-tier" of LNG players, local government-backed city gas distributors that are joining the global gas market alongside the country's dominant state traders like PetroChina and CNOOC.
Its deputy general manager Chai Xiqiang said the agreement with Mexico Pacific is an "important step" in further diversifying its energy supply portfolio.
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