OQ Trading and Amigo LNG Forge a 15-Year LNG Supply Agreement

OQ Trading and Amigo LNG Sign a Strategic LNG Supply Agreement

In a significant development in the energy sector, OQ Trading (OQT), the international trading arm of the Government of Oman, has finalized a long-term Liquefied Natural Gas (LNG) Supply and Purchase Agreement (SPA) with Amigo LNG S.A. de C.V., a subsidiary of LNG Alliance based in Singapore. This deal, spanning over 15 years, aims to enhance global energy collaborations and signifies a pivotal moment for both companies involved.

Terms of the Agreement

The SPA stipulates that OQT will procure 0.6 million tonnes per annum (MTPA) of LNG from Amigo LNG's export terminal located in Guaymas, Sonora, Mexico. The agreement illustrates OQT's strategy to extend its LNG sourcing beyond traditional markets in the Middle East and Asia.

OQT Signing Event

Strategic Implications

The CEO of OQT, Wail Al Jamali, emphasized the importance of this agreement by stating, "This SPA with Amigo LNG marks a significant milestone in OQT's mission to develop a global LNG portfolio. By securing supply from reliable partners, we can diversify our sources, enhance the resilience of our energy supply chain, and fulfill our long-term commitment to offering cleaner and more dependable energy solutions in an increasingly dynamic energy landscape."

As the demand for cleaner fuels grows—especially within regions like Asia and the Indian subcontinent—OQT is set to benefit from a supply route that promises to be not only cost-effective but also geopolitically neutral.

Logistics and Infrastructure

The choice of Amigo LNG's facility in Mexico aligns with the logistical requirements to meet the rising Asian demands. The facility has a nameplate capacity of 7.8 MTPA and is supported by the Mexican government under its Plan Sonora gas strategy. This project is expected to significantly contribute to economic growth in the region and facilitate access to clean energy for broader markets.

Muthu Chezhian, the CEO of LNG Alliance, remarked, "We take pride in our collaboration with OQT, demonstrating the reliability and potential of Amigo LNG as an energy bridge from Mexico’s West Coast to international markets. This partnership reinforces Mexico's crucial role in the ongoing energy transition towards sustainability."

Future Outlook

The first shipments under this agreement are slated to begin in the second quarter of 2028. As global energy dynamics continue to evolve, this partnership symbolizes a growing synergy between Latin America and the Gulf region in energy production and supply, highlighting the importance of establishing long-term alliances for a sustainable energy future.

OQT operates globally, trading over 40 million tonnes of energy products annually and has offices strategically positioned around the world, including Muscat, Dubai, Houston, London, Rotterdam, Shanghai, and Singapore. The venture with Amigo LNG is set to bolster OQT's position as a leader in the energy sector while further securing the international LNG market's resilience and reliability.

In summary, the partnership between OQ Trading and Amigo LNG is more than just a business agreement; it signifies a collaborative effort to redefine energy supply chains, enhance sustainability, and promote economic growth across continents.