Mexico Pacific and China’s Zhejiang Energy execute Long-Term LNG Sales and Purchase Agreements

05 July 2023

Zhejiang Energy International Limited (Zhejiang Energy) and Mexico Pacific Limited (Mexico Pacific) announced today they have signed a sales and purchase agreement for Zhejiang Energy to offtake 1.0 million tons per year (MTPA) of liquefied natural gas (LNG) from Mexico Pacific’s anchor LNG export facility, Saguaro Energia, located in Puerto Libertad, Sonora, Mexico.

Under the sales and purchase agreement, Zhejiang Energy will purchase LNG on a free on-board basis over a term of 20 years.

“We are delighted to deepen our supply relationship with Asian end user customers via this long-term SPA with Zhejiang Energy,” said Ivan Van der Walt, Chief Executive Officer of Mexico Pacific. “LNG is an important pillar to China’s energy security needs and it’s underlying green policy ambitions. Zhejiang Energy is the sole gas distributor in Zhejiang province, one of the largest provincial economies in China, and under this new agreement Mexico Pacific will further support the growing energy requirements of this region.”

Mr. Xiqiang Chai, Deputy General Manager at Zhejiang Provincial Energy Group said: “Zhejiang Provincial Energy Group (ZEG) has consistent interest in seeking international upstream energy resources, such as natural gas. This new long-term agreement with Mexico Pacific is an important step in further diversifying our energy supply portfolio and strengthening ZEG’s natural gas industry. We are excited to be partnering with Mexico Pacific as they work to deliver low-cost LNG to China.”

About Mexico Pacific

Mexico Pacific’s anchor project, the 14.1 mtpa Saguaro Energia LNG Facility, is the most advanced LNG development project on the West Coast of North America. The Saguaro Energia LNG Facility achieves significant cost and logistical advantages resulting in the lowest landed price of North American LNG into Asia by, leveraging low-cost natural gas sourced from the nearby Permian Basin, and a significantly shorter shipping route avoiding Panama Canal transit risk for Asian markets. More information can be found at http://www.mexicopacific.com.