Mexico Pacific Signs 20-Year LNG Deal with POSCO International
(P&GJ) — Mexico Pacific has finalized a 20-year sales and purchase agreement (SPA) with POSCO International, a leading energy trading company from Korea.
The deal, announced this week, involves POSCO International purchasing 0.7 million tonnes per annum (mtpa) of LNG from Mexico Pacific's Saguaro Energía facility.
The agreement marks a significant step for both companies. POSCO International, known for its extensive role in global energy markets, will receive LNG on a free-on-board basis. The partnership underscores the growing trade relationship between Korea and Mexico, which is bolstered by a comprehensive free trade agreement (FTA) with the United States.
Mexico Pacific’s Saguaro Energía LNG facility, located in Puerto Libertad, Sonora, is set to become a major player in the global LNG market. The first phase of the facility, which will feature three liquefaction trains, aims to deliver competitively priced LNG to Asia. This project is part of Mexico Pacific's broader strategy to position Mexico as a leading LNG exporter, leveraging low-cost natural gas from the Permian Basin in Texas.
The deal with POSCO International is a notable development for Mexico Pacific as it advances toward a final investment decision (FID) for the Saguaro Energía facility. The project is expected to drive significant investment and economic growth in the region, contributing to Mexico’s status as the world’s fourth-largest LNG exporter.
“We are delighted to welcome POSCO International as a foundation customer, further validating the strategic value of west coast North American LNG for Korea, one of the world’s largest LNG importing markets,” said Sungbok Park, Chief Marketing Officer of Mexico Pacific. “We look forward to a lasting fruitful partnership with POSCO International and to delivering world-class infrastructure that strengthens global energy security, reduces emissions, and improves the lives of millions of people around the world.”
The Saguaro Energía project represents a major private investment in Mexico and aligns with the Sonora Plan, which aims to foster clean energy advancements and economic benefits for the region.
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