Mexico Pacific and the government of Sonora have signed a collaboration agreement to support the construction of the Saguaro Energia liquefied natural gas (LNG) export facility in Puerto Libertad, Sonora, Mexico. The agreement ensures the timely issuance of state and municipal permits, paving the way for the project's construction to begin this year.

The Saguaro Energia LNG facility represents the largest foreign private investment in Mexico's history and is set to position Sonora as a leader in producing cleaner and more affordable energy. The CEO of Mexico Pacific, Ivan Van der Walt, expressed gratitude for the support received from President Andres Manuel Lopez Obrador and Governor Alfonso Durazo.

Recently, Mexico Pacific also secured a sales and purchase agreement with China's Zhejiang Energy International Limited for the offtake of 1.0 million tons per year of LNG from the facility. The agreement spans 20 years and will allow Zhejiang Energy to purchase LNG on a free on-board basis.

Additionally, Shell Eastern Trading and ExxonMobil have also committed to purchase LNG from the Saguaro Energia facility. The project is strategically positioned to offer significant cost and logistical advantages, resulting in the lowest landed price of North American LNG into Asian markets by utilizing low-cost natural gas from the nearby Permian Basin and a shorter shipping route that avoids the Panama Canal transit risk.