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Partners to Develop LNG Terminal on Mexico's West Coast

Maritime Activity Reports, Inc.

August 7, 2024

(Image: Salina Cruz LNG)

(Image: Salina Cruz LNG)

Energy company GFI LNG and energy infrastructure developer Pilot LNG announced a partnership to develop, construct and operate a small-scale liquefied natural gas (LNG) terminal in Salina Cruz, Mexico.

The partners said they plan to commence front-end engineering and design (FEED) development for the project this quarter, followed by a 12-18 month development and permitting timeline and anticipated final investment decision (FID) in the second half of 2025.

Scheduled to become fully operational between mid-to-late 2027, the facility is expected to produce 600,000 gallons of LNG daily, equivalent to approximately 0.34 million metric tonnes per annum (MTPA). To expedite the project, it will feature modular, land-based liquefaction equipment and an optimized storage solution. A floating storage unit (FSU) with a capacity of 50,000 to 140,000 m³ will be moored within the newly expanded breakwater at the Port of Salina Cruz.

The Salina Cruz terminal will utilize domestic Mexican gas from the Veracruz gulf region to access high-value markets along the Pacific Coast. These markets include LNG marine fuel deliveries at the Pacific entry of the Panama Canal and Southern California (the Ports of Long Beach & Los Angeles), sales to Central American power markets, and trucked volumes in the local region of southwestern Mexico. Customers of Salina Cruz will benefit from competitively priced LNG linked to Henry Hub prices.

“The infrastructure planned in Salina Cruz will not only provide LNG to growing markets seeking cleaner fuel, but will also bring millions in direct community investment to the region” said Gomez. “We are pleased to be adding the LNG and marine expertise of Pilot to the development team. Thanks to our new partnership with Pilot, we look forward to bringing this facility to Salina Cruz.”

“With long personal ties to the region, the GFI team is dedicated to helping bring infrastructure development to Salina Cruz and brings a critically necessary understanding and appreciation for the local community and government,” said Jonathan Cook, CEO of Pilot. “We are pleased to be working with GFI to help progress this project.”

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