Amigo LNG Signs LNG Supply Deal With Malaysia's E&H Energy

Amigo LNG has entered into a 20-year agreement to supply 3.6Mt/y of LNG to E&H Energy for the Malaysian market. The agreement, set to begin in the third quarter of 2027, marks a significant step for E&H Energy as Malaysia continues its gas market liberalization under the supervision of the Energy Commission of Malaysia. The country's gas market is expected to grow, driven by rising demand, particularly in the power sector.

Amigo LNG, a large-scale liquefaction and export facility located near the Port of Guaymas in Sonora, Mexico, has a capacity of 7.8Mt/y. It is the only project in the region with both Free Trade Agreement (FTA) and non-FTA permits from the US Department of Energy, valid through December 2027. The project, developed in cooperation with the State of Sonora, is a key component of the state's strategy to position itself as a hub for nearshoring, maritime decarbonization, and enhanced connectivity to Asian markets via Pacific shipping routes.

During the signing event in Kuala Lumpur, Dato' Wan Adlil, Executive Director, E&H Energy, emphasized the alignment of the agreement with Malaysia’s goal of achieving gas market parity by 2027. He noted that E&H Energy aims to play a significant role in providing energy solutions within Malaysia's LNG and gas sectors.

Muthu Chezhian, CEO, LNG Alliance Pte Ltd, expressed satisfaction with the long-term partnership, noting that it aligns with the company's strategy to serve the growing Southeast Asian LNG market. He highlighted Amigo LNG's logistical advantages, particularly its optimized shipping routes to the region.

The development of Amigo LNG also reflects Mexico’s commitment to sustainability. The project includes initiatives such as the use of biomethane produced locally from organic waste in Sonora, which will be blended with imported US natural gas. This approach aims to reduce the project's carbon footprint while promoting a circular economy. Amigo LNG is positioned as the first of its kind in the region to integrate environmental, social, and governance (ESG) principles into its operations.