Woodside secures long-term LNG supply from Mexico Pacific LNG
Australia's Woodside Energy has signed an agreement with Mexico Pacific LNG to purchase 1.3mn tonnes/year of LNG for 20 years, commencing in 2029. The LNG will be sourced from the Saguaro Energia LNG project, located in Puerto Libertad, Sonora, Mexico.
Under the agreement, Woodside will purchase the LNG on a free-on-board (FOB) basis, with pricing linked to US gas indices. The agreement is subject to Mexico Pacific taking a final investment decision (FID) on the proposed third train at the Saguaro Energia LNG project.
Woodside CEO Meg O’Neill said, “As we deliver on our strategy, we aim to complement Woodside’s produced LNG supply with third parties’ volumes, giving us greater scale and portfolio flexibility to serve our customers, while optimising our LNG trading activities.”
The Saguaro Energia LNG project is well-positioned to serve key markets in Asia, with Puerto Libertad located on Mexico’s Pacific coast. The project is expected to commence commercial operations in 2029, following an FID targeted for the first half of 2024.
“We are delighted to welcome Woodside, a global leader in LNG, as a foundation customer for Train 3,” said Sarah Bairstow, President of MPLNG. “This agreement underscores the attractiveness of our project and its strategic location to serve the growing LNG market.”