MEXICO CITY (Reuters) – Mexico Pacific said on Tuesday that it will supply ExxonMobil with an additional 1.2 million tonnes per annum of liquefied natural gas (LNG).
ExxonMobil LNG Asia Pacific tied up the agreement to purchase the LNG from a proposed third train at Mexico Pacific’s Saguaro Energia project on Mexico’s west coast, Houston-based Mexico Pacific said in a statement.
Exxon will purchase the LNG on a free-on-board basis over a 20-year term, Mexico Pacific said.
With the agreement, Mexico Pacific has reached the sales required to make a final investment decision later this year on the third train, CEO Ivan Van der Walt said in the statement.
The Saguaro Energia project is set to ship 15 million tonnes per annum of LNG from the Permian Basin in the United States to Asia. The project has a price tag of over $15 billion, officials from the Mexican state of Sonora said last year.
(Reporting by Kylie Madry; Editing by Susan Fenton)
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