U.S. Companies Plan Major LNG Bunkering Terminal in Mexico

Two U.S. energy and infrastructure companies have formed a joint venture to develop, construct and operate what will be a major new LNG bunkering transhipment terminal in Mexico. 

The joint venture consists of GFI, a U.S.-based energy company, and Pilot LNG, an infrastructure developer that is also involved in other LNG projects including Cork LNG, and the Galveston LNG bunker port.

The new facility will be located in Salinas del Márquez in Oaxaca, Mexico. Situated on the Pacific side of the Panama Canal, the facility (which has been named Salina Cruz LNG), is strategically positioned to supply both North and Central American bunker and fuel markets. 

Once complete, Salina Cruz LNG will be producing 600,000 gallons of liquefied natural gas (LNG) per day - which equates to around 0.34 million metric tonnes per annum (MPTA). It’s expected that operations at Salina Cruz LNG will commence in mid-2027. 

With the two companies wanting the project to become operational as soon as possible, they are designing and building the Salina Cruz LNG in a modular fashion - using modular, land-based liquefaction equipment. The project will also make use of a floating storage unit (FSU) with an estimated capacity ranging from 50,000 to 140,000 m³; the FSU will be moored alongside a newly expanded breakwater in the Port of Salina Cruz. 

Gas to supply Salina Cruz LNG will be drawn from the domestic Mexican gas network. Expected customers for the subsequent LNG include; LNG marine fuel deliveries at the Pacific entry of the Panama Canal and into Southern California (e.g. the Ports of Long Beach and Los Angeles), sales into Central American power markets, and trucked volumes in the local region of southwestern Mexico. 

Commenting on the project, a spokesperson for 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. 

We are pleased to be adding the LNG and marine expertise of Pilot to the development team. Thanks to our new partnership with Pilot, we look forward to bringing this facility to Salina Cruz”.

Jonathan Cook, CEO of Pilot LNG, added: 

“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.

We are pleased to be working with GFI to help progress this project”.

GFI and Pilot LNG are expected to commence front end engineering and design (FEED) work on Salina Cruz LNG imminently. A final investment decision (FID) is expected to be made during the latter half of 2025. 

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