Due to the rising demand for LNG-powered vessels, two U.S.-based firms, GFI LNG and Pilot LNG, have joined forces to establish a new small-scale LNG terminal in Salina Cruz, Mexico. This project aims to meet the growing needs of the shipping industry by providing a strategically located LNG bunkering and transshipment facility.
The Salina Cruz LNG joint venture will oversee the development, construction, and operation of the terminal, with operations expected to begin in mid-to-late 2027. The partners plan to initiate front-end engineering and design work this quarter and expect a 12-to-18-month period for development and permitting. They anticipate making a Final Investment Decision (FID) in the second half of 2025, with an overall timeline of approximately 36 months for permitting and construction.
The terminal will feature modular, land-based liquefaction trains and streamlined mooring and topside modifications at the expanded breakwater in Salina Cruz. Upon completion, the facility is projected to produce 600,000 gallons of LNG per day, equivalent to about 0.34 million metric tonnes per annum (MTPA).
To expedite the project, the terminal will utilize a Floating Storage Unit (FSU) with a capacity between 50,000 and 140,000 cubic meters for LNG storage. The plant will use domestically sourced Mexican gas from the Veracruz Gulf region, benefiting from existing pipeline capacity and a reliable gas supply while employing proven liquefaction technology.
GFI, headquartered in Houston, has extensive experience in Mexico, while Pilot LNG, also based in Houston, specializes in clean energy infrastructure. Pilot LNG’s other projects include the Galveston LNG Bunker Port and the Cork LNG FSRU import terminal in Ireland.
The Salina Cruz LNG terminal will supply LNG marine fuel to ships at the Pacific entrance of the Panama Canal and also serve the ports of Los Angeles and Long Beach in Southern California. Additionally, the terminal aims to support the Central American power markets and provide trucked LNG volumes to southwestern Mexico
