OQ Trading (OQT), the Government of Oman’s international energy and commodity trading vehicle, has signed a 15-year LNG sales and purchase agreement (SPA) with Amigo LNG, the Mexican subsidiary of Singapore-based LNG Alliance.
Under the agreement, OQT will purchase 0.6 mill tonnes per annum of LNG on a free on board (FOB) basis, from Amigo LNG's export terminal in Guaymas, Sonora, Mexico.
This long-term supply partnership represents a strategic move by OQT to diversify its LNG sourcing portfolio beyond the Middle East and Asia, while marking a significant milestone in Amigo LNG's global commercialisation strategy, the companies said.
The first LNG deliveries under the agreement are expected to commence in the second quarter of 2028.
"This SPA with Amigo LNG represents a significant step forward in OQT's strategy to develop a global LNG portfolio," said Wail Al Jamali, OQT CEO. "By securing supply from trusted partners, we continue to diversify our LNG sources, strengthen the resilience of our energy supply chain, and reinforce our long-term commitment to providing cleaner, more reliable energy solutions for our customers in the evolving energy landscape."
The West Coast of Mexico provides a direct sailing route to Asia, thus reducing shipping time and offering flexibility in supply chain operations.
Amigo LNG's facility - designed for a nameplate capacity of 7.8 mill tonnes per annum - is being developed in close collaboration with Mexico’s SEMAR's (Secretaría de la Marina) modernisation plan for the Port of Guaymas and is fully backed by the Government of Sonora.
"We are proud to partner with OQT, a globally respected player in the energy sector," said Muthu Chezhian, LNG Alliance CEO. "This agreement reinforces Amigo LNG's position as a new, reliable energy bridge from Mexico's West Coast to global markets and demonstrates the strength of Mexico's role in shaping the future of sustainable energy transition."
Crosshead--Commonwealth SPA
In addition, Kimmeridge’s Commonwealth LNG has signed an SPA with an undisclosed major Asian energy company.
Under the agreement, the buyer will purchase 1 mill tonnes per annum of LNG for 20 years from Commonwealth’s 9.5 mill tonnes per annum facility currently under development in Cameron, Louisiana.
“This offtake agreement marks another important milestone for Commonwealth as we work toward a final investment later this year and first offtake planned for 2029,” said Ben Dell, Managing Partner of Kimmeridge and Commonwealth Chairman. “We look forward to working with this buyer, a longstanding leader in LNG, as we further our integrated wellhead-to-water strategy in delivering LNG to critical markets around the world.”
Commonwealth’s phase 1 development is expected to bring an investment of more than $11 bill to Louisiana and generate an estimated $3.5 bill in annual export revenue.
The project is expected to employ around 2,000 workers at the peak of construction and provide about 275 high-paying jobs when the facility begins operations in late 2029.
“We look forward to building and strengthening our partnership with this buyer in mutually beneficial ways as we progress on our journey,” said Commonwealth President and CEO, Farhad Ahrabi. “We’re committed to building and creating a safe, reliable, efficient, and well-governed LNG operating company.”
Commonwealth is owned by Kimmeridge SoTex Holdco (SoTex), which was formed by Kimmeridge, an asset manager focused on the energy sector.
Through SoTex, which also operates an upstream natural gas development company called Kimmeridge Texas Gas, Kimmeridge is building US’ first integrated gas independent to deliver low-cost natural gas from wellhead-to-water and meet burgeoning demand for responsibly-produced LNG across global markets, the company claimed.
The SPA will become fully effective upon the satisfaction of customary conditions, including an positive final investment decision (FID) on the project.
Finally, a long-term LNG SPA has been signed between Brunei LNG and PetroChina International Singapore (PCSG).
The official signing took place last week in Singapore involving Adeleye Falade, Brunei LNG Managing Director and CEO, and Sun Jinhua, Managing Director of PCSG.
No details were revealed.
