ExxonMobil's LNG Leap: Secures 1.2 MTPA Boost From Mexico Pacific Project

Mexico Pacific penned a third long-term Sales and Purchase Agreement (SPA) with Exxon Mobil Corp XOM ExxonMobil LNG Asia Pacific for an additional 1.2 million tonnes per annum (MTPA) of Liquefied Natural Gas (LNG).

XOM inked the deal for LNG from Train 3 of Mexico Pacific’s Saguaro Energia project located on the west coast of Mexico.

As per the Train 3 LNG SPA, ExxonMobil will purchase LNG on a free-on-board basis over a 20-year term, with an option for another 1 MTPA from Train 4.

Ivan Van der Walt, CEO Mexico Pacific, said, “While we remain focused on initially taking FID on Trains 1 and 2, this latest LNG SPA with ExxonMobil concludes the LNG sales required for a subsequent Train 3 FID expected this year.” 

Peter Clarke, ExxonMobil’s Head of Global LNG and Senior Vice President said, “Bringing additional North American LNG to global markets advances energy security and helps to lower emissions in many countries with high energy demand. Long term contracts play an essential role in underpinning the investments that will be required to advance the energy transition.”

Also Read: ExxonMobil Reportedly Bids Iraq Farewell, PetroChina Takes the Lead in Mega Oilfield

In January, XOM detailed the anticipated effects on its business operations in fourth-quarter FY23, expecting gas prices to boost upstream by $0.4 billion-$0.8 billion, while liquids prices dragged down by $0.4 billion-$0.8 billion.

Price Action: XOM shares are trading lower by 0.48% at $97.22 premarket on the last check Wednesday.

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