Mexico Pacific has secured the support of the Sonora government for its $14bn Saguaro Energia LNG project in the Mexican state, which is designed to produce 15 million tonnes per annum (mtpa) of liquefied natural gas (LNG).

In this regard, the US-based company has signed a collaboration agreement with the government of the Sonora state for its anchor LNG export facility to be built in Puerto Libertad.

As part of the agreement, the Sonora government has pledged to facilitate a streamlined process for starting construction of the midstream project. This involves ensuring the prompt issuance of state and municipal permits.

Mexico Pacific said that with the ongoing support and commitment of the state government, the company expects to begin construction on the Saguaro Energia LNG project this year.

Besides, the project is set to become the foundational pillar of the Sonora Plan, a clean energy and nearshoring initiative aimed at fostering economic prosperity and clean energy development for the region.

The Sonora Plan was announced by the Mexican government at the North American Leaders’ Summit earlier this year. The summit was held between Mexican President López Obrador, US President Joe Biden, and Canadian Prime Minister Justin Trudeau.

Mexico Pacific CEO Ivan Van der Walt said: “We are pleased to enhance our strategic relationship with the Government of Sonora as we prepare to commence construction of our Saguaro Energia LNG facility, supported by Mexico’s skilled workforce and our local communities.

“We appreciate the continued support of President López Obrador and Governor Durazo as we work together to position our project, and the State of Sonora, to lead the way in the production of cleaner, more affordable energy.”

Seen as the largest foreign private investment in Mexican history, the Saguaro Energia LNG project is expected employment opportunities, facilitate infrastructure development, and generate tax revenues for the state and the country.

The three-train LNG export project will be supported by a natural gas pipeline that will be laid across Texas, Chihuahua, and Sonora.

Under a 20-year agreement, the Mexican Federal Electricity Commission (CFE) will supply natural gas to Mexico Pacific procured from the Permian Basin in the US into the latter’s pipeline in the US and through the former’s pipelines in Mexico.