Woodside has firmed a sales and purchase agreement (SPA) with Mexico Pacific regarding the acquisition of 1.3 million tonnes per annum (mtpa) of liquefied natural gas (LNG). The amount, equivalent to 18 cargoes per year, will be delivered for a period of 20 years.
According to the agreement, the LNG will be sources from the second development phase of Mexico Pacific's Saguaro Energía LNG export facility in Puerto Libertad, Sonora. The supply was secured on a free-on-board basis and prices will be linked to US gas indices.
For the SPA to be fully valid, Mexico Pacific still needs to take a final investment decision (FID) on Saguaro Energía's phase 2, which involves the installation of a third train at the future facility.
An FID on the project is expected in the first half of 2024, while start-up is scheduled for 2029.
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