Mexico’s Amigo LNG export project could increase its production capacity amid strong interest from liquefied natural gas (LNG) buyers in the Middle East and Asia, as major energy companies across the war-disrupted region seek new sources of supply.
“We have seen a huge surge in interest from a number of new offtakers who see the benefit of having a portfolio on the West Coast,” Dr. Muthu Chezhian, CEO of project developer Amigo LNG, told BNamericas.
In the last month, the US$3.5 billion (bn) venture in the port of Guaymas in Sonora state on Mexico’s Pacific coast has received queries for an additional 3Mt/y of LNG offtake.
With nameplate capacity of 5.1Mt/y, Amigo LNG has existing long-term sales and purchase agreements to export 4.6Mt/y. It will sell 0.2Mt/y into the Mexican market.
“We are contemplating bumping up production capacity,” Chezhian said. “If increasing capacity by 10–15% only costs 3–4% more, it makes business sense. The incremental cost is relatively low and it gives us much better returns. We can charge a good fee.”
“Asian NOCs [national oil companies] looking for long-term offtake directly from Mexico is something that was not there before.”
“With the chokepoints around LPG [liquefied petroleum gas] supply, countries are now considering how they can move from LPG towards an LNG mode. That is a new development from our perspective.”
Chezhian expects to announce a final investment decision (FID) on May 20. Debt finance for the project is oversubscribed.
2028 start date
Amigo LNG, a joint venture between Texas-based Epcilon LNG LLC and Singapore-based LNG Alliance Pte Ltd, expects to begin commercial operations in the second half of 2028.
The war in the Middle East has so far not disrupted Amigo’s timeline, Chezhian said.
The company has chosen UAE-based Dubai Drydocks World to develop its floating liquefaction facility and storage units.
“They have given us a couple of methodologies and alternatives [on] how to do it in a safe, reliable and within-schedule approach,” Chezhian said.
Growth
In early 2026, an Amigo LNG affiliate signed a memorandum of understanding with Mexico’s state-owned pipeline operator Cenagas to develop a pipeline from the US border to Guaymas.
The proposed pipeline will provide Amigo LNG with the feedgas capacity it needs to supply additional liquefaction facilities in Sonora.
Amigo LNG is close to receiving commitments for nearly 60% of the capacity of a potential second train, Chezhian said.
“These are investment-grade NOCs which we had not even anticipated before.”
“It shows that the role of Mexico is being seen differently in some parts of the world,” Chezhian said. “Under President Sheinbaum’s administration there is a very clear energy framework.
“Energy security for the country is important, but there’s also a good business case [for LNG exports] that they’re looking into. That is being seen favorably by Asian buyers. It is a healthy sign.”
BNamericas will publish the full interview with Dr. Chezhian in the coming days.
(The original version of this content was written in English)