The Salina Cruz LNG joint venture has announced its plan to develop, build and operate an LNG terminal in Mexico. One of the main purposes would be to transship and supply small-scale liquefied natural gas at Salinas del Marquez, Salina Cruz, Oaxaca.
Announcement of the new LNG terminal in Mexico
This initiative arises from the collaboration between GFI LNG and Pilot LNG, who have decided to take advantage of the privileged geographical position of the region, located on the Pacific side of the Panama Canal. With this strategic location, the terminal aims to supply the bunker and fuel markets in both North and Central America, with a projected production capacity of 600,000 gallons of LNG per day, equivalent to about 0.34 million metric tons per annum(MTPA).
The facility will have a modular onshore liquefaction unit, complemented by a floating storage unit. floating storage unit (FSU)(FSU) whose capacity will range from 50,000 to 140,000 m³. This unit will be moored inside the recently expanded breakwater at the Port of Salina Cruz, an infrastructure that will facilitate loading and unloading operations.
The gas supply for this terminal will come from the Gulf of Veracruz region, and is intended to meet demand in high-value markets. Major destinations for this LNG include marine fuel delivery points in the Panama Canal and Southern California, as well as in Central American energy markets. In addition, local distribution of trucked volumes is planned, which will further expand the scope of the project.
LNG project expectations
According to Jonathan Cook, Pilot LNG’s CEO, the company is deeply committed to the region, highlighting the importance of understanding and valuing the needs of the community and local authorities. Cook mentioned that this project will boost infrastructure development in Salina Cruz, and will foster a close and cooperative relationship with the local community.
The next step in the development of this project is the completion of preliminary engineering and design, which is scheduled to begin this quarter. The partners anticipate a development and permitting period that could extend 12 to 18 months, with the expectation of making a final investment decision(FID) during the second half of 2025.
This announcement comes against the backdrop of an expanding LNG sector in Mexico. In January 2024, Mexico Pacifico signed a Long-Term Sale and Purchase Agreement(SPA) with ExxonMobil LNG Asia Pacific(EMLAP) to supply an additional 1.2 million tons per annum(MTPA) of LNG from its Saguaro Energia project, located on the west coast of Mexico.
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Source and photo: Salina Cruz LNG
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