Mexico Pacific Limited to Build LNG Plant in Sonora

Mexico Pacific Limited (MPL) will build a gas pipeline and liquefaction plant in Sonora, with an investment of up to US$14 billion. So far, MPL has closed two sales agreements with ExxonMobil and Shell. 

On May 2, 2023, President López Obrador announced through social media that he had had several meetings with American officials and business-people to talk about a new investment project in the north of the country. "Today we held three important meetings: we received Elizabeth Sherwood-Randall, President Biden’s envoy, to address the migration issue through a humanist approach. We were also given the good news that MPL will build a gas pipeline and liquefaction plant in Sonora, with an investment of US$14 billion," the statement reads. 

Marcelo Ebrard, Mexican Foreign Minister, had told journalists earlier that day of a meeting with MPL to discuss a considerable investment regarding liquefied natural gas (LNG).
“The company plans to ship out of the Pacific, because its main market is in Asia," Ebrard added.

According to MPL’s website, the company is already building a 14.1 million t/year liquefied natural gas (LNG) export terminal in Puerto Libertad, Sonora. The plant will be located on a 300-acre plot of land and is being financed by AECOM Capital in partnership with Och-Ziff Capital Management. The main objective of the project is to evacuate the gas produced in the Permian Basin between Texas and Arizona.

So far, the company has at least two LNG sales agreements from the Puerto Libertad plant. In February 2023, MPL reported that they had reached a deal for about 2 million tons of LNG per year with ExxonMobil LNG Asia Pacific (EMLAP), over a 20-year term. “LNG has an important role to play in helping society reduce emissions by enabling the delivery of lower carbon energy,” said Peter Clarke, Senior Vice President of LNG, ExxonMobil Upstream Company.

Likewise, in March, 2023, the company announced a similar agreement with the Anglo-Dutch firm Shell for the purchase of 1.1 million tons of LNG per year. “LNG is an increasingly important pillar of global energy security. Investment in liquefaction projects is needed to avoid a supply-demand gap that is expected to emerge in the late 2020s. We are pleased to be working with Mexico Pacific to provide more LNG to the global market,” said Steve Hill, Executive Vice President of Energy Marketing, Shell. 

Ivan Van der Walt, CEO, Mexico Pacific, pointed out that currently natural gas plays a critical role in the quest for global energy security, as well as for the energy transition. “We remain committed to supplying vital energy for decades,” he added.