GLNG: Shell subsidiary signs 20-year LNG supply deal with MPL plant in Mexico

Shell (UK) announced on July 12 that its subsidiary Shell Eastern Trading Ltd had arranged to purchase 2.6mn tonnes per year (tpy) of LNG from a new gas liquefaction plant slated for construction at Puerto Libertad in Mexico’s Sonora State.

In a statement, Shell said that its subsidiary had signed a sales and purchase agreement (SPA) with an affiliate of the future plant’s owner and operator Mexico Pacific Ltd (MPL), which is controlled by the US investment firm AVAIO Capital. That agreement provides for Shell Eastern Trading to buy 2.6mn tpy of LNG from the first two production trains of the Puerto Libertad plant over a period of 20 years.

MPL will deliver the LNG on a free on board (FOB) basis, the statement noted.

The LNG plant is due to begin operating in 2026 and will process gas pumped from Permian basin fields in the US states of Texas and New Mexico across the border into Mexico by pipeline. It will eventually have three production trains and a total production capacity of 14.1mn tpy, Shell said.