#Mexico #Macquarie Group #Amigo LNG #LNG Agreement #Guaymas

AMIGO LNG and Macquarie Group: A Landmark LNG Agreement

In an exciting development for the energy sector, AMIGO LNG S.A. de C.V., the Mexican venture formed by Texas-based Epcilon LNG LLC and Singapore's LNG Alliance, has officially signed a 15-year Sale and Purchase Agreement (SPA) with the Macquarie Group. This agreement signifies a crucial step towards strengthening Mexico's position in the increasingly competitive global liquefied natural gas (LNG) market.

Details of the Agreement

As part of this long-term deal, AMIGO LNG will supply Macquarie with approximately 0.6 million tonnes per annum (MTPA) of LNG. Deliveries are expected to commence following the launch of AMIGO LNG's first liquefaction train, which is projected to begin commercial operations in the second half of 2028. The agreement underscores AMIGO LNG’s strategy to cater to the growing demands for LNG, particularly in the Asia-Pacific and Latin American regions.

Strategic Significance

The location of AMIGO LNG in Guaymas, Sonora, provides it with essential access to the U.S. Permian Basin's gas, significantly enhancing the efficiency of shipping routes. This advantageous positioning is aimed at achieving faster transit times and competitive landed costs, which are vital attributes for energy buyers. Dr. Muthu Chezhian, CEO of LNG Alliance, expressed his enthusiasm about Macquarie becoming one of their key LNG offtakers, emphasizing their reputation as an innovative leader in the energy sector.

Michael Bennett, Managing Director in Macquarie's Commodities and Global Markets division, stated that LNG plays a vital role in the global energy landscape by offering a reliable and adaptable fuel source. He reiterated Macquarie's commitment to meeting diverse client energy needs and expressed pride in collaborating with AMIGO LNG to bolster energy security in regions facing rapid demand growth.

Advanced Technology and Infrastructure

AMIGO LNG aims to use state-of-the-art U.S. liquefaction techniques paired with modern marine infrastructure. Their goal is to create a facility that adheres to the highest standards of safety, sustainability, and operational excellence. This commitment to innovation and excellence is set to enhance not just local energy supply, but also contribute to global energy security.

About the Partners

LNG Alliance, established in 2013, focuses on developing advanced gas and LNG terminal infrastructure in the USA, Mexico, Southeast Asia, and Europe. Leveraging strong alliances with top-tier energy and technology stakeholders globally, LNG Alliance is set on providing reliable and sustainable energy solutions that have a local impact with a global reach.

Macquarie Group, founded in 1969, has grown into a global player with over 19,000 employees across 31 markets. The Commodities and Global Markets division has a longstanding reputation for providing clients with essential financial and risk management services across different commodities and financial sectors.

Conclusion

The partnership between AMIGO LNG and Macquarie Group is a strategic move that not only enhances energy relations between Mexico and the global market but also reinforces the long-term potential of LNG as a key component of the energy sector. As the world continues to shift towards cleaner energy sources, such robust agreements will shape the future of energy supply and security.