Houston-based energy developers launch JV for Salina Cruz LNG project

Houston-based energy companies Pilot LNG and GFI LNG are teaming up to develop, build and operate a liquefied natural gas bunkering and transshipment terminal in Salina Cruz on the Pacific Coast of Mexico. 

The small-scale Salina Cruz LNG joint venture will produce 0.34Mt/y of LNG.

GFI and Pilot plan to start front-end engineering and design development for the project this quarter, the companies said in a joint press release Wednesday. 

After a 12-18 month development and permitting timeline, they expect to announce a final investment decision in the second half of 2025, pending all necessary permit approvals, offtake agreements and financing. 

Operations are projected to begin in mid-to-late 2027.

The companies said the project will supply North and Central American bunker, transportation and fuel-to-power markets. 

The site will include land-based liquefaction trains and a floating storage unit (FSU) with estimated capacity of 50,000-140,000m3 which will be moored inside the newly expanded breakwater in the port of Salina Cruz.

The initiative is the latest in a series of LNG projects that are at various stages of development along Mexico's Pacific Coast, including Sempra's Energía Costa Azul and Vista Pacífico projects and LNG Alliance's Amigo facility. 

Whereas those much larger projects will use natural gas from the US and target Asian export markets, Salina Cruz LNG will use Mexican gas and will meet regional demand. 

As well as making LNG deliveries at the Pacific entry of the Panama Canal and in the ports of Long Beach and Los Angeles, Salina Cruz LNG will serve Central American power markets and local demand in southwestern Mexico. 

Financial details were not disclosed.