Locator: 48574LNGMEXICO.
Mexico Pacific Limited LNG export terminal update.
An update from Energy Economics and Financial Analysis, June 24, 2025. The information was obtained directly from the source, not edited. I
cannot on the veracity of the report and it has not been fact-checked:
For almost eight years, Mexico Pacific Limited (MPL) has worked to secure financing for its proposed Saguaro Energía liquefied natural gas (LNG) export terminal on Mexico’s Pacific coast. The project, reported to cost at least $15 billion, would export as much as 15 million tons per year (Mtpa) of LNG from a facility near the small town of Puerto Libertad in Sonora, Mexico. A potential second phase would double that capacity. Natural gas would be transported from Texas to the Pacific coast via a 500-mile (800-kilometer) pipeline that would be built specifically to supply gas to the liquefaction facility.
Saguaro Energía’s Pacific location offers comparatively direct access to the Asian markets that are expected to drive LNG demand growth in the coming decades. MPL estimates that its terminal would shave $1 in shipping costs per million British thermal units (MMBtu) of LNG produced, when compared with Atlantic and Gulf Coast export facilities that must route Asian shipments through the increasingly unreliable Panama Canal, the security-challenged Suez Canal, or around Africa or South America.
MPL was launched in 2017 but didn’t attract its first customer until 2022, when global natural gas prices spiked due to Russia’s invasion of Ukraine and the curtailment of gas shipments to Europe. From 2022-24, MPL was able to leverage those price spikes and its shipping cost advantages to lock in 14 Mtpa of LNG sales agreements with ExxonMobil, Shell, ConocoPhillips, Woodside Energy, and two Chinese buyers.
But despite this commercial progress, internal turmoil—including frequent changes in investors and executives, evolving project designs, and critical permitting errors—has slowed the project’s momentum. Even if the project could solve its internal challenges, it would still face a tangled web of external obstacles, including rising construction costs, contracting difficulties, shifting trade politics, legal challenges, regulatory barriers, safety concerns, and growing local opposition.
From AI this morning:
Saguaro Energía and Costa Azul are not the same facility, although they are both liquefied natural gas (LNG) projects located in Mexico.
Here's why they are different:
Saguaro Energía:Proposed large-scale LNG export facility on Mexico's Pacific coast, in Puerto Libertad, Sonora, Mexico. Being developed by Mexico Pacific.
Focuses on leveraging low-cost U.S. natural gas (from the Permian Basin) and a shorter shipping route to deliver LNG to Asian markets.
Faces potential challenges including legal setbacks, community opposition, and concerns about its environmental impact.
Costa Azul:Located in Ensenada, Baja California, Mexico, north of Ensenada.In summary, Saguaro Energía and Costa Azul are distinct LNG projects with different locations, developers, and statuses.
Originally built as an LNG import terminal and is currently being converted into an export terminal.
Being developed by Sempra Infrastructure, with TotalEnergies also involved in the export phase.
A smaller facility compared to the proposed Saguaro Energía project, but is moving forward with construction.
Anticipated to begin commercial operations in spring 2026.
