Zhejiang Energy International Ltd, and Mexico Pacific Ltd, have announced that they have signed a sales and purchase agreement (SPA) for Zhejiang Energy to offtake 1 million tpy of LNG from Mexico Pacific’s anchor LNG export facility, Saguaro Energia, located in Puerto Libertad, Sonora, Mexico.
Under the SPA, Zhejiang Energy will purchase LNG on a free on-board basis over a term of 20 years.
“We are delighted to deepen our supply relationship with Asian end user customers via this long-term sales and purchase agreement (SPA) with Zhejiang Energy,” said Ivan Van der Walt, CEO of Mexico Pacific. “LNG is an important pillar to China’s energy security needs and it’s underlying green policy ambitions. Zhejiang Energy is the sole gas distributor in Zhejiang province, one of the largest provincial economies in China, and under this new agreement Mexico Pacific will further support the growing energy requirements of this region.”
“Zhejiang Provincial Energy Group has consistent interest in seeking international upstream energy resources, such as natural gas. This new long-term agreement with Mexico Pacific is an important step in further diversifying our energy supply portfolio and strengthening the company’s natural gas industry. We are excited to be partnering with Mexico Pacific as they work to deliver low-cost LNG to China,” commented Xiqiang Chai, Deputy General Manager at Zhejiang Provincial Energy Group.
Read the article online at: https://www.lngindustry.com/special-reports/10072023/mexico-pacific-and-chinas-zhejiang-energy-execute-long-term-lng-sales-and-purchase-agreements/
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