News Article

Mexico Pacific Progresses Low Carbon LNG Export Project

By Cas Biekmann | Tue, 10/26/2021 - 16:03

Mexico Pacific Limited (MPL), a company located on Mexico’s West Coast, is gearing up to become a key player in exporting liquefied natural gas (LNG) to Asian markets. A collaboration with ConocoPhillips and Bechtel is among the company’s latest feats.

On Oct. 25, MPL announced its collaboration with the latter companies, seeking to lower carbon emissions associated with LNG. ConocoPhillips would develop solutions that reduce greenhouse gas emissions, designed by Bechtel with a focus on cost-efficiency. Earlier this year, MPL CEO Douglas Shanda described the company as a sort of ‘dark horse’ to S&P. The company has been quietly building commercial backing for a project that aims to transport natural gas from Texas’ Permian Basin to Puerto Libertad, Sonora to then liquefy it so that it can be exported to far-away markets with a high demand for the fuel.

Much of this need is connected to the global energy transitions, as markets scramble to find cleaner and cost-effective energy sources. “LNG plays a significant role in the global energy transition,” said Shanda. “We are constantly evolving our business strategies to further reduce our carbon footprint and this cutting-edge initiative provides opportunities to reduce greenhouse gas emissions by seeking to curtail the production of emissions, rather than just capturing or reporting them. We are honored to partner with this world-class LNG team as we do our collective part to address climate change.”

“ConocoPhillips is pleased to support MPL and Bechtel in designing LNG trains for the MPL LNG Project based on the high efficiency OCP Pro™ technology that includes our latest low carbon design and operating features," said Mike Culligan, Manager of LNG Technology and Licensing at ConocoPhillips.

“LNG plays an important role in the global energy transition to lower carbon solutions, and Bechtel is proud of its historical and ongoing participation in the LNG industry. The MPL LNG Project will be a great example of how we, along with our customers and technology providers, can continue to supply LNG to offset traditional high emission fuels such as coal and others while developing and applying real innovations to meet the environmental goals of the industry,” said Paul Marsden, Energy President at Bechtel.

Various players in North America are looking to tap into the potential flowing from Asia’s appetite for natural gas. Now that international supplies are dwindling and prices are driving up, LNG looks to be a solid bet toward the future. In the Mexican context, IEnova and its parent company Sempra Energy’s Energía Costa Azul facility have made significant progress. MPL’s LNH project has advanced too, with a 14.1MMty/y capacity gearing up to supply Asia via a shorter shipping route that avoids the Panama Canal.

Cas Biekmann Cas Biekmann Journalist and Industry Analyst