Mexico Pacific Ltd. LLC has reached an settlement with the federal government of Chihuahua state to advance the proposed 2.8 Bcf/d Sierra Madre pure gasoline pipeline.
Sierra Madre would provide Permian Basin gasoline from the U.S. border throughout the states of Chihuahua and Sonora to Mexico Pacific’s proposed Saguaro Energía LNG export terminal envisioned for Puerto Libertad on the Sonoran coast.
Below the settlement, “the federal government of Chihuahua will proceed to pave an environment friendly path for the graduation of building of this historic challenge within the coming months, marking yet one more vital milestone within the development of power infrastructure for the state,” Mexico Pacific mentioned.
Mexico Pacific has but to succeed in a closing funding determination (FID) on Saguaro Energía. Nonetheless, it has secured offtake commitments from counterparties together with ConocoPhillips, Shell plc and China’s Zhejiang Power Worldwide Ltd.
The challenge’s first three trains, if sanctioned, would have a mixed liquefaction capability of 14.1 million metric tons/yr (mmty) or 1.86 Bcf/d.
Chihuahua’s authorities has dedicated “to help Mexico Pacific in areas of mutual curiosity regarding the development and operation of pipeline infrastructure in Chihuahua,” the agency mentioned. “These embody logistics, building, expertise, safety, and group engagement,”
Mexico Pacific CEO Ivan Van der Walt mentioned. “The state of Chihuahua has a talented workforce and holds a promising future as a middle of nearshoring excellence for cleaner power and main capital tasks. We’re proud to have consciously designed our pipeline to keep away from environmentally delicate areas, indigenous communities, and inhabitants facilities, a primary for pipeline improvement in Mexico, demonstrating the power for funding to co-exist with, and earn the belief and help of, the federal government and key stakeholders.”
Help from Chihuahua Gov. Maru Campos, together with state and municipal leaders alongside the deliberate pipeline route, “display the significance of Mexico Pacific’s funding within the state,” the corporate mentioned. “Comprising a key a part of the broader LNG challenge, the Sierra Madre Pipeline will carry employment alternatives, infrastructure improvement, group enchancment, and financial development to Chihuahua and the nation whereas positioning Mexico because the fourth-largest LNG exporting nation worldwide, considerably contributing to international power safety.”
Mexico doesn’t at the moment export liquefied pure gasoline. Nonetheless, a number of tasks are deliberate, with the purpose of re-exporting pipeline gasoline imported from the USA.
Sempra’s roughly 3 mmty Energía Costa Azul (ECA) Section 1 and New Fortress Power Inc.’s 1.4 mmty Altamira Quick LNG challenge are essentially the most superior, and the one ones to have begun building.
On the U.S. aspect of the border, Oneok Inc. is awaiting the Saguaro Energía FID with a view to proceed with the two.8 Bcf/d Saguaro Connector pipeline, which might join the Waha hub in West Texas with MPL’s pipeline in Mexico.
“We see Mexico because the rising LNG powerhouse in Latin America,” Poten & Companions Inc.’s Sergio Chapa, senior LNG analyst, mentioned this week in the course of the US-Mexico Pure Fuel Discussion board in San Antonio, TX. He highlighted that along with ECA Section 1 and Altamira, there are eight LNG export tasks totaling 50.2 mmty proposed in Mexico. Consequently, Mexico might change into Latin America’s largest LNG exporter, Chapa mentioned. Trinidad and Tobago at the moment holds that title, adopted by Peru.
Talking on the similar occasion, Power and Infrastructure Advisors’ Guillermo Turrent, basic supervisor, mentioned Mexico Pacific is prone to face difficulties finishing a brand new pipeline to Puerto Libertad, attributable to a historical past of opposition to pipelines in northwestern Mexico.
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