Mexico Pacific Ltd said that it has struck a 20-year deal to sell a million metric tons of liquefied natural gas (LNG) annually from its Saguaro Energia export plant on west coast of Mexico to China’s Zhejiang Energy.
The new agreement would allow Mexico Pacific to “further support the growing energy requirements” of Zhejiang province, one of the largest provincial economies in China, Mexico Pacific CEO Ivan Van der Walt said in a statement.
A Zhejiang Energy official said the contractual supplies will be on free-on-board basis with first shipment in 2027, which gives the company the flexibility to either supply the fuel to China or elsewhere.