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2 minutes read

New Joint Venture Formed for Salina Cruz LNG Project

Energy solutions provider GFI LNG LP (GFI) has joined forces with Houston-based clean energy infrastructure developer Pilot LNG (Pilot) to establish a small-scale liquefied natural gas (LNG) terminal in Salina Cruz, Mexico.

Scheduled to commence operations in mid-to-late 2027, the facility is projected to produce 600,000 gallons of LNG per day. The terminal will utilize modular, land-based liquefaction technology along with a storage system, including a floating storage unit (FSU) with a capacity ranging from 50,000 to 140,000 cubic meters, which will be stationed at the expanded breakwater of the Port of Salina Cruz.

The initiative aims to harness Mexico’s domestic gas supply from the Veracruz Gulf region, enabling access to lucrative markets along the Pacific Coast.

“The infrastructure being developed in Salina Cruz will not only supply LNG to expanding markets seeking cleaner fuel but will also drive significant community investment in the region,” a GFI spokesperson stated.

Target markets for the LNG include marine fuel deliveries at the Panama Canal’s Pacific entrance, Southern California ports, Central America’s power markets, and local distribution in southwestern Mexico.

Pilot LNG intends to leverage this project to expand its LNG delivery capabilities to both new and established global markets.

Jonathan Cook, CEO of Pilot, remarked, “With strong connections to the region, the GFI team is committed to advancing infrastructure development in Salina Cruz and has a deep understanding and appreciation for the local community and government. We are excited to partner with GFI on this project.”

The project will begin with a front-end engineering design (FEED) this quarter, followed by a 12-18 month development and permitting phase, with a final investment decision anticipated in the second half of 2025.

Mexico is progressing with several LNG export projects on both its east and west coasts. Two projects are already under construction: New Fortress Energy’s Altamira plant in Tamaulipas, and Sempra’s Energía Costa Azul facility in Baja California, which is being developed at an existing LNG import terminal. The remaining projects are in earlier stages of development.

These Mexican export terminals will primarily process and export natural gas sourced from U.S. fields, including the Permian Basin in Texas and New Mexico.

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