This month, Mexico marked a significant milestone with the initial shipment of LNG (liquefied natural gas) from its first export facility.
The LNG cargo sailed through the Panama Canal, destined for the LNG import terminal in Baja California Sur.
Production and export details
The LNG was produced by New Fortress Energy aboard an offshore floating LNG production vessel (FLNG) off Mexico's east coast.
This vessel, which can liquefy up to 0.199 billion cubic feet per day (Bcf/d) of natural gas, is part of the Fast LNG Altamira project. The natural gas is supplied through the South Texas-Tuxpan pipeline from the U.S.
Modular design and storage
The FLNG vessel's modular design is complemented by a floating storage unit (FSU) that stores the LNG before it's transferred to carriers for delivery.
Regulatory approvals
Exports from this project require U.S. Department of Energy (DOE) approval since the gas is sourced from the U.S. Currently, 0.43 Bcf/d of LNG exports are authorized for countries with a U.S. Free Trade Agreement (FTA).
An additional request for 0.4 Bcf/d to non-FTA countries is pending.
NAFTA and LNG imports
In 2023, NAFTA countries imported 7.4 Bcf/d of global LNG, about 14% of the global market. These countries have a combined regasification capacity of approximately 27.3 Bcf/d.
Future developments
Mexico's LNG export capabilities are expanding, with several projects underway on the west coast, including:
Energía Costa Azul currently under construction (0.4 Bcf/d for Phase 1 and an additional 1.6 Bcf/d for Phase 2 (proposed).
Saguaro Energia LNG (2.0 Bcf/d capacity)
Amigo LNG (1.0 Bcf/d capacity)
Gato Negro LNG (0.6 Bcf/d capacity)
Salina Cruz LNG (0.4 Bcf/d capacity)
Vista Pacifico LNG (0.5 Bcf/d capacity)
These projects aim to boost Mexico's export capacity by nearly 4.5 Bcf/d, with information to EIA.
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