Canada, Mexico move LNG projects from planning to execution

Mexico’s most visible supply initiative is already producing. New Fortress Energy’s FAST LNG 1 project – an integrated modular mid‑scale facility, offshore Altamira – has been in operation since mid‑2024. The stand‑alone installation delivers about 1.4 mta using three repurposed jack‑up rigs hosting utilities and accommodation, gas treatment and liquefaction. The developer reports the plant has met and exceeded design rates and highlights features including interconnection of the rigs with flexible and articulated connections and flexible hoses for LNG and boil‑off gas transfer to a floating storage unit. The project narrative emphasises a rapid execution cycle and modular design choices adopted for the offshore environment. 

Amigo LNG has moved forward on both commercial and execution tracks. It has executed two long‑term sales and purchase agreements (SPAs): a 20‑year SPA with Gunvor Singapore and a 15‑year SPA with OQ Trading, the trading arm of Oman’s OQ Group. The companies presented the agreements as a means to provide a reliable LNG supply and to strengthen energy partnerships. 

On execution, the developer has awarded an engineering, procurement and construction contract for marine facilities to COMSA Marine and selected Drydocks World Dubai to deliver the EPC scope for an offshore liquefaction unit that the yard describes as the world’s largest FLNG. The Amigo scheme is planned as a land‑based liquefaction terminal at Guaymas, Sonora, with an initial train of 3.9 mta and potential for a second train of equal size, deepwater access for LNG carriers up to 265,000 m³, and feed gas delivered from the US Permian Basin via existing pipelines. 

These projects sit against a shifting market backdrop. Sector analysis points to an expansion wave in post‑FID and near‑FID liquefaction capacity and cautions this could intersect with a weaker demand profile in China. Wood Mackenzie has argued that US export schemes “may be commercially viable in isolation, but taken together they threaten to outpace the market’s ability to absorb additional volumes.” The firm stated that “each project taking final investment decision makes commercial sense individually, but collectively they risk pushing the market towards oversupply.” The analysis links an 18% fall in Chinese imports in January–August 2025 year‑on‑year with structural factors, including alternative baseload power, growing pipeline imports and rapid roll‑out of renewables, while also citing geopolitics and concentrated supply as additional sources of uncertainty. 

For Canada, the combination of the Cedar LNG floating development at Kitimat (not to be confused with the cancelled Chevron/Woodside project Kitimat LNG) and an electrically driven shore‑based plant at Woodfibre reflects different pathways to market, both framed by electrification and environmental permitting. The Cedar LNG partners present the project as an Indigenous‑led initiative using hydroelectric power, while Woodfibre’s update places emphasis on electrification, net‑zero from commencement and an Indigenous regulatory framework. Both are working against defined schedules. 

For Mexico, the offshore FAST LNG plant provides immediate visibility of exports derived from North American gas while the onshore Amigo LNG concept builds a longer‑term Gulf of California outlet that has now secured two foundation offtakes and contracted key scopes. The question for all four projects is one of timing and offtake depth as new supply mobilises across the Atlantic basin. Off-takers could face margin pressure if spot prices soften in an oversupplied environment, even if infrastructure‑style fee structures offer developers some insulation.