MEXICO CITY and HOUSTON, June 19, 2024 (GLOBE NEWSWIRE) — Mexico Pacific (“Mexico Pacific” or the “Company”), owner of the Saguaro Energía LNG facility and the associated Sierra Madre Pipeline, announced today that it has signed an agreement with an affiliate of Mexico’s national natural gas and electricity company, Comisión Federal de Electricidad (“CFE”), under which Mexico Pacific will make an unprecedented social investment (the “Social Investment Agreement”) in the Mexican states of Sonora and Chihuahua. The Social Investment Agreement establishes a mechanism for the creation of a dedicated trust, managed by representatives of Mexico Pacific, CFE, and state governments, for the allocation and implementation of the social investment.
After extensive community engagement and consultation, Mexico Pacific, CFE, and state and city authorities conducted a needs analysis and identified six priority areas for social investment: community infrastructure, skills development, education, safety and peace, environment, and health. Approximately half of the investments will be made in communities along the route of Mexico Pacific’s Sierra Madre Pipeline, which spans six municipalities in the state of Chihuahua and 10 municipalities in the state of Sonora. The remainder of the investments will be in the Puerto Libertad neighborhood of Pitiquito municipality, Sonora, where Mexico Pacific’s Saguaro Energía LNG facility will be built.
“At Mexico Pacific, we are proud to have consciously designed the Saguaro Energía LNG facility and its supporting Sierra Madre pipeline to deliver positive environmental and social outcomes to complement the material economic benefits they bring to the region. As a testament to our long-term commitment to local communities, this social investment compact provides for unprecedented investments in community infrastructure and high-impact social programs that will have a lasting positive impact on the 16 municipalities in Chihuahua and Sonora where the facility will be built and operated,” said Sara Bairstow, CEO of Mexico Pacific. “We are pleased to work collaboratively with our partner, CFE, and the state governments and people of Sonora and Chihuahua who share our vision. We look forward to delivering world-class infrastructure that will enhance global energy security, reduce emissions and improve the lives of many people in Mexico and around the world.”
The social investment agreement builds on an existing strategic partnership between Mexico Pacific, CFEnergía and CFE International, which includes the supply of natural gas transported from the Permian Basin to Mexico Pacific’s U.S. pipeline and via the CFE pipeline to the Saguaro Energía LNG facility in Puerto Libertad, Sonora, Mexico. This commitment to social investment throughout the construction and operational phases of energy infrastructure projects will enable Mexico Pacific to have a meaningful and sustained positive impact on the health and prosperity of Mexico’s future generations.
With three commercially contracted liquefaction trains, strong government and capital market support, and key federal, state and local permits across the Saguaro Energía LNG facility and the Sierra Madre Pipeline, Mexico Pacific expects to achieve a final investment decision (FID) in 2024. These developments represent Mexico’s largest private investments and are a fundamental pillar of the Sonora Plan to promote clean energy development, investment, and economic prosperity in the region.
About Mexican Pacific Airlines
Mexico Pacific’s flagship project, the 15 million tonnes per year Saguaro Energia LNG facility, is the most advanced LNG development on the West Coast of North America. By leveraging low-cost natural gas supplied from the nearby Permian Basin and a significantly shorter shipping route that avoids the risks of transiting the Panama Canal, Saguaro Energia LNG offers significant cost and logistical advantages, enabling it to deliver the lowest landed prices for North American LNG to Asia. For more information, visit http://www.mexicopacific.com.
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