Woodside signs 20-year LNG deal with Mexico Pacific
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The news: Woodside has signed an agreement to buy LNG from Mexico Pacific for the next 20 years.
The numbers: Woodside will buy 1.3 million tonnes of LNG, or about 18 cargo loads, per year for two decades. The agreement is subject to Mexico Pacific making a final investment decision on a third train at the Saguaro Energia LNG Project, which is expected to be confirmed in the first half of 2024.
The context: The news had little effect on Woodside's share price, which has been grinding lower in recent months as weak global demand takes a toll on oil and gas prices after hitting multi-year highs in 2022.
What they said: "This agreement with Mexico Pacific delivers a new source of LNG into our trading portfolio, expands our geographic diversification in the Pacific Basin and builds on our presence in Mexico," Woodside CEO Meg O'Neil said in a statement. "Mexico Pacific’s Saguaro Energia LNG Project is located on the Pacific coast of Mexico, providing proximity to key markets in Asia."
The source: ASX Announcement
