Texan energy company Mexico Pacific will build a $14bn liquified natural gas (LNG) plant at Puerto Libertad in the Mexican state of Sonora.
Mexican president Andrés Manuel López Obrador tweeted the announcement Tuesday. It follows a lengthy planning and development period.
In the project’s first phase, Mexico Pacific will build two liquefaction units, each with a capacity of 4.7 metric tonnes per annum (mtpa).
It will build a third 4.7 mtpa unit in the second phase, giving the plant, called Saguaro Energía, a total production capacity of 14.1 mtpa.
The company will also build two storage tanks, a port terminal, and the “Saguaro Connection” pipeline.
It said the contract would be a flat-rate, turnkey EPC, and would involve partners Bechtel, Techint, ConocoPhillips, and Baker Hughes.
According to business website BNAmericas, Mexico Pacific has signed a series of long-term supply contracts for its LNG, including a 20-year sale and purchase agreement for 3.7 million tonnes a year with Shell and 2 million tonnes with Exxonmobil.