JV formed to develop small-scale LNG terminal in Mexico

Houston-based firms GFI LNG and Pilot LNG, a energy infrastructure developer, announced they have formed a partnership to develop, construct and operate a small-scale LNG terminal in Salina Cruz, Mexico.

Both companies believe the Salina Cruz site, located on the Pacific side of the Panama Canal, is ideally positioned to supply North and Central American bunker and fuel markets.

GFI and Pilot plan to commence front-end engineering and design development for the project this quarter. A 12-18 month development and permitting timeline and a final investment decision in the second half of 2025 is expected.

At full build-out, the facility is projected to produce roughly 0.34M tonnes of LNG per year. Operations are scheduled to commence mid-to-late 2027. With speed-to-market in mind, the project is being designed to include modular, land-based liquefaction equipment and optimised storage. 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.

These premium markets include LNG marine fuel deliveries at the Pacific entry of the Panama Canal and into Southern California, sales into Central American power markets, and trucked volumes in the local region of southwestern Mexico. Salina Cruz customers can expect competitively priced, Henry Hub-linked LNG sales.

“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 Pilot LNG chief executive Jonathan Cook. “We are pleased to be working with GFI to help progress this project.”

A spokesperson from GFI said the infrastructure planned in Salina Cruz “will not only provide LNG to growing markets seeking cleaner fuel, but will also bring millions in direct community investment to the region.”