Mexico Pacific, owner of the Saguaro Energía LNG facility and associated Sierra Madre Pipeline, have announced that it has signed a sales and purchase agreement (SPA) with POSCO International Corporation (POSCO International), Korea’s largest energy trading company and a global leader in the pursuit of a sustainable future.
Pursuant to the SPA, POSCO International will purchase 0.7 million tonnes per annum (mtpa) of LNG on a free-on-board basis over a term of 20 years. Mexico Pacific and POSCO International are evaluating additional opportunities to expand upon this initial commercial partnership. Korea has a robust trade relationship with Mexico and is one of the only major economies in Asia that has a comprehensive free trade agreement (FTA) with the United States.
Sungbok Park, chief marketing officer of Mexico Pacific says: ‘We are delighted to welcome POSCO International as a foundation customer, further validating the strategic value of west coast North American LNG for Korea, one of the world’s largest LNG importing markets. We look forward to a lasting fruitful partnership with POSCO International and to delivering world-class infrastructure that strengthens global energy security, reduces emissions, and improves the lives of millions of people around the world.’
