Amigo LNG, a Mexican subsidiary of Singapore’s LNG Alliance, has signed a binding Heads of Agreement (HOA) with OQ Trading (OQT), the trading arm of Oman’s national energy company. This agreement will facilitate the supply of liquefied natural gas (LNG) from Amigo LNG’s liquefaction facility currently under development on Mexico’s west coast.
The agreement marks a significant milestone, paving the way for a long-term LNG supply from Amigo LNG’s Guaymas, Sonora facility, which aims to cater to the rapidly growing Asian market. The terminal is expected to export 4.2 million tonnes per annum (mtpa) from its first train, with plans for a potential second 3.6-mtpa train.
Muthu Chezhian, CEO of LNG Alliance, commented: “Securing this offtake agreement with a leading NOC partner like OQT reinforces our role as a reliable global energy provider. We are progressing rapidly on the strategically located Amigo LNG project and are committed to supporting our customers and partners through the energy transition with our lower-carbon solutions.”
Feed gas for the facility will be sourced from the Permian shale basin in the U.S. and transported to Mexico via existing pipelines. The site features adequate ocean frontage and deepwater access for LNG ships with capacities up to 265,000 cubic meters.
Wail Al Jamali, CEO of OQT, added: “We are pleased to enter into this HOA with Amigo LNG, marking a significant step in expanding our LNG portfolio and enabling us to deliver LNG to customers in the Asia Pacific region.”
Recent developments in Mexico’s LNG sector include a pair of developers seeking a 20-year permit from the U.S. Department of Energy to export natural gas to Mexico, convert it to LNG, and supply both free trade agreement (FTA) and non-FTA countries.
Additionally, New Fortress Energy received DOE approval to export up to 1.4 million tonnes per annum of LNG to non-FTA countries from its Fast LNG 1 unit for five years.
A notable upcoming project is the small-scale LNG bunkering and transshipment terminal in Salina Cruz, Mexico. Developed by U.S. companies GFI LNG and Pilot LNG, the facility is expected to produce 600,000 gallons of LNG daily (approximately 0.34 million mtpa) and commence operations in mid-to-late 2027.