Amigo LNG targets final investment decision in May

Mexico’s Amigo LNG is targeting a final investment decision (FID) on May 20, LNG Alliance’s CEO told BNamericas in an interview on April 13.

Muthu Chezhian CEO of LNG Alliance said the company’s flagship $3.5bn project is gaining momentum and FID is expected to be taken shortly given that the project is oversubscribed for debt finance, has secured equity investors, and has acquired the US free trade agreement (FTA) and non-FTA export permits.

The project’s current focus now is on execution of engineering, procurement, and construction (EPC) elements.

In April, the company inked a 20-year Sales and Purchase Agreement (SPA) with Abu Dhabi-based International Resources Holding (IRH). Under the terms of the deal, IRH will buy 1mn tonnes per year (tpy) of the super-chilled fuel from Amigo LNG’s export terminal located in Guaymas, Sonora, Mexico’s northwestern state.

Cargo deliveries are expected to commence once the facility’s liquefaction train begins commercial operations, currently scheduled for the second half of 2028. The deal means that Amigo LNG now has 4.6mn tpy of LNG sales secured under long-term deals, with the project also allocating 0.2mn tpy for Mexico’s domestic use. Train One has a total production capacity of 5.1mn tpy.

Demand for LNG from Mexico is also growing in Asia. Amigo LNG’s ideal location on Mexico’s western coast and direct shipping path to Asian markets without need to pass through canals or geopolitical hotspots has made the project increasingly popular as a reliable supplier.

Amid the growing interest in Mexican LNG, Amigo LNG is considering expanding the capacity of Train One to 6mn tpy. Meanwhile Train Two has almost 60% of its production close to being committed. Train Two would have a production capacity of 3.6mn tpy.

Natural gas to be used as feedstock is being supplied to the project by a 500 km pipeline from Naco to Guaymas with a memorandum of understanding signed with national gas pipeline regulator Cenagas.