Leading the charge in global energy security with LNG facility

Industry and government leaders worldwide are intensifying efforts to bolster energy supply security while advancing environmental goals, particularly reducing greenhouse gas emissions. Liquefied natural gas (LNG) is central to this global agenda, positioned to provide reliable and affordable energy for future generations amidst geopolitical uncertainties, insufficient investment in energy infrastructure, and evolving market dynamics.

At the forefront of these developments is Mexico Pacific’s Saguaro Energía LNG Facility, the largest private investment in Mexico. Coupled with the Sierra Madre Pipeline, this project promises to harness the robust resources of the U.S. and Mexico, establishing a North American hub to enhance energy security and environmental sustainability across the region and beyond. Integral to Mexico’s Sonora Plan, the project aims to drive clean energy development and economic prosperity in collaboration with North American allies.

Sarah Bairstow, CEO of Mexico Pacific and Chair of Gastech 2024’s Executive Committee, underscores the project’s momentum: “With all permits secured and commercial contracts in place, supported by governments and capital markets, we are finalizing financing towards our investment decision. Working with industry leaders, we aim to deliver infrastructure that fortifies global energy security, reduces emissions, and solidifies North America as a significant LNG supplier.”

Rising global LNG demand

Global LNG demand has consistently doubled every decade since its inception, driven by increasing energy needs and a shift towards cleaner fuels. Forecasts suggest a widening supply gap, necessitating substantial investment in liquefaction capacity, particularly in North America and the Middle East. The Asia Pacific region, which consumes over two-thirds of global LNG, is poised for substantial growth.

To meet this burgeoning demand, investments in LNG infrastructure are crucial, spanning liquefaction and regasification facilities. Innovations in production technologies are optimizing efficiency and lowering costs, making LNG a pivotal component of the global energy transition. As a flexible complement to intermittent renewable sources, natural gas plays a vital role in stabilizing energy grids and meeting escalating global energy demands.

Unlocking the potential of the Permian Basin

The Permian Basin holds the world’s largest proven natural gas reserves, predominantly as a byproduct of oil extraction. Significant quantities of associated gas are flared annually due to inadequate infrastructure, highlighting the urgent need for market access. Mexico Pacific’s LNG facility offers a strategic solution by exporting Permian Basin gas via the Sierra Madre Pipeline, minimizing flaring and enhancing global LNG supply.

Strategically located in Puerto Libertad, Sonora, Mexico Pacific reduces shipping times to Asia by approximately 15 days compared to Gulf of Mexico routes via the Panama Canal, ensuring cost-effective and efficient delivery. This logistical advantage, coupled with state-of-the-art environmental practices, positions Mexico Pacific as a leader in sustainable LNG production and distribution.

Commitment to sustainability and stakeholder engagement

Mexico Pacific prioritizes environmental stewardship and community engagement, employing advanced technologies and sustainable development practices. The Sierra Madre Pipeline, spanning 800 kilometers through northern Mexico, exemplifies this commitment by avoiding densely populated areas and environmentally sensitive zones. Collaborations with local governments and communities ensure projects proceed with social acceptance and contribute positively to regional development.

Mexico Pacific has agreed to invest in targeted, high-impact community infrastructure and unprecedented social programs in Sonora and Chihuahua, including the Municipality of Pitiquito (Puerto Libertad) where the LNG facility will be located. Through a strong focus on engagement with municipal leaders and community members, as well as robust data collection on social investment needs and initiatives, Mexico Pacific is now evaluating social investments in six areas of focus: community infrastructure, skills development, education, security and peace, environment, and health, ensuring a lasting positive impact on communities in which Mexico Pacific constructs and operates.

Charting a path to a sustainable future

Mexico Pacific’s ambitious LNG project not only addresses immediate energy security concerns but also sets a precedent for sustainable development in the LNG industry. By leveraging abundant Permian Basin resources and strategic location advantages, the company is poised to redefine North America’s role in global LNG markets. With robust stakeholder relationships and a steadfast commitment to environmental responsibility, Mexico Pacific is paving the way towards a brighter, closer, and more sustainable energy future.