Mexico Pacific Limited to invest US$ 14 billion in gas pipeline and liquefaction plant
Mexico Pacific Limited (MPL) will invest US$14 billion in the construction of a gas pipeline and a liquefaction plant in Sonora, Mexico.
According to a permit it obtained from the U.S. government, MPL stated that natural gas will be exported to Mexico at the U.S.-Mexico border through existing cross-border natural gas transportation pipelines, including an interstate pipeline owned by Sierrita Gas Pipeline LLC that extends to the U.S.-Mexico border near Sasabe, Arizona.
In addition, MPL indicated that it will develop an LNG production and storage facility to be located in the State of Sonora, (the MPL Facility).
«Pacific Limited will build a gas pipeline and a liquefaction plant in Sonora, whose investment amounts to 14 billion dollars,» Mexican President Andres Manuel Lopez Obrador said Tuesday.
According to MPL, the site of the future MPL facility is located in the Gulf of California, adjacent to Puerto Libertad, Mexico, approximately 160 miles south of the U.S.-Mexico border at Sasabe.
Once constructed, the MPL facility will be able to receive, process and liquefy natural gas from the United States, store the LNG and transport the resulting liquefied natural gas and load it onto LNG carriers for re-export to other countries and for supply to other markets in Mexico, particularly Mexican markets that are far from Mexico’s pipeline network but can be supplied by LNG shipping.
MPL applied for both authorizations for a period of 20 years, beginning on the date of the first export or five years from the date of the final order granting the export authorization, whichever occurs first.
Mexico Pacific Limited
In addition, MPL is applying for this authorization on its own behalf and as agent for other entities holding title to the natural gas at the time of export to Mexico and/or U.S.-origin natural gas at the time of re-export as LNG from Mexico.
MPL is a Delaware limited liability company with its principal place of business in Houston, Texas.
The company is owned by MPL Pacific Limited LLC, which is jointly owned by DKRW Energy Sonora Holding and ACAP Sonora Energy, LLC.
DKRW Sonora Holding LLC is a wholly owned subsidiary of DKRW Energy LLC.
Originally, MPL scheduled to begin construction of the MPL Facility in 2019 or early 2020, and bring the MPL Facility into commercial operation in 2023.
Now, the company anticipates commercial operations of that plant to begin in 2025.
