Small-scale LNG terminal planned for Mexican coast

Salina Cruz LNG, LLC is developing a small-scale liquefied natural gas (LNG) bunkering facility and transshipment hub in the Port of Salina Cruz, Oaxaca, Mexico. The project is ideally situated to supply North and Central American bunker, transportation and fuel-to-power markets, the companies said.

A liquefied natural gas (LNG) bunkering and transshipment terminal is being developed in Oaxaca, Mexico.

GFI LNG LP (GFI), a diversified energy solutions company, and Pilot LNG LLC (Pilot), a Houston-based clean energy infrastructure developer, will develop, construct, and operate a small-scale LNG terminal in Salina Cruz, Mexico. At full build-out, the facility is anticipated to produce 600,000 gal. of LNG per day, or roughly 0.34 million metric tonnes per annum (MTPA). The partners anticipate operations to commence in mid-to-late 2027. With speed-to-market in mind, the project is being designed to include modular, land-based liquefaction equipment and an optimized storage solution. The project will deploy a floating storage unit (FSU) with an estimated capacity ranging from 50,000 – 140,000 m3 to be moored inside the newly expanded breakwater in the Port of Salina Cruz.

Salina Cruz will use domestic Mexican gas supply from the Veracruz gulf region to access new high-value markets along the Pacific Coast, the companies said. These premium markets include: LNG marine fuel deliveries at the Pacific entry of the Panama Canal and into Southern California (the Ports of Long Beach & Los Angeles), sales into Central American power markets, and trucked volumes in the local region of southwestern Mexico. Salina Cruz customers can expect to benefit from competitively priced, Henry Hub-linked LNG sales.

GFI, a Houston-based energy company, has over 20 years of continuous commodity sales of natural gas, refined products, and electricity into Mexico.

Led by LNG veterans with extensive experience in project development, Pilot aims to deliver LNG to new and existing markets across the world and develop a global portfolio of projects.

“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.”

GFI and Pilot plan to commence front-end engineering and design development for the project this quarter. The partners anticipate a 12-18 month development and permitting timeline and anticipate announcing a Final Investment Decision (FID) in the second half of 2025.