Gato Negro applies for new export permit for Mexican LNG

The developers of the Gato Negro liquefied natural gas (LNG) plant in Manzanillo, Mexico, have applied to the US Department of Energy for permission to export LNG to countries with which Washington does not have a free trade agreement (FTA).

The permit is required because the project will import natural gas from the US and then liquefy it for export from the port of Manzanillo, in Colima state on the Pacific coast.

To be built on a 25-acre site, the Gato Negro plant will consist of up to four liquefaction trains and will have production capacity of 4Mt/y of LNG.

The two shareholders in the project are Mexican citizens Carlos Camacho and Emilio Fuentes, each with a 50% stake.

Construction is due to begin in 2026, if the DoE grants authorization. 

In May, Gato Negro Permitium Uno applied for a permit to export LNG to FTA countries. In August, the same developers submitted an application for Gato Negro Permitium Dos to send US gas to Mexico for export to non-FTA countries mainly in Asia, using the same pipeline and liquefaction capacity as Gato Negro Permitium Uno.

The facility will export a total of up to 203Bf3/y of LNG to FTA and non-FTA countries. Depending on demand, a second phase of the project may also be built. 

Compared to traveling from the Gulf Coast of the US, tankers will reach Asia faster and will emit lower volumes of greenhouse gases, avoiding the Panama Canal, where ships have been subject to increasing congestion and delays.

Gato Negro may also deliver LNG to customers in Mexico. 

The Gato Negro project began the Mexican permitting process in June 2022. Developers expect to receive approval from Mexico's energy ministry and energy market regulator CRE at the end of the current quarter.

An affiliate of the project, Houston-based Big River Energy has already received DoE authorization to export natural gas to Mexico.

Feed gas will be supplied through the TC Energy Guadalajara-Manzanillo pipeline. The liquefaction plant will use Siemens SGT-750 turbines.

The port of Manzanillo is currently home to an LNG import terminal.