Sahara Group and Amigo LNG Forge 20-Year LNG Supply Partnership to Enhance Global Energy Access and Security
Sahara Group, a prominent global energy and infrastructure conglomerate, and Amigo LNG S.A. de C.V., a Mexican subsidiary of Singapore-based LNG Alliance, have entered into a significant 20-year Liquefied Natural Gas (LNG) Sales and Purchase Agreement (SPA). This landmark agreement marks a crucial step towards bolstering global efforts to ensure seamless energy access and security. Under the terms of the SPA, Sahara Group will procure 0.6 metric tonnes per annum (MTPA) of LNG from Amigo LNG’s export terminal situated in Guaymas, Sonora, Mexico. This strategic partnership underscores both companies’ commitment to fostering a cleaner energy future and driving sustainable development across the globe.
The collaboration between Sahara Group and Amigo LNG is poised to be transformative, particularly in addressing the energy needs of underserved regions. LNG, recognized as a key enabler of energy security and economic growth, plays a critical role in the global transition towards cleaner energy sources. This agreement allows Sahara Group to diversify its energy portfolio and contribute to a more sustainable energy landscape. The strategic location of Amigo LNG’s export terminal on Mexico’s West Coast offers advantageous access to rapidly expanding markets in the Asia-Pacific and Latin America, ensuring efficient delivery of LNG to these regions.
This long-term partnership signifies a major milestone in the ongoing global energy transition. It secures a reliable LNG supply for Sahara Group, contributing to the diversification of energy sources and enhancing energy security. Amigo LNG’s facility, with a capacity of 7.8 MTPA, is strategically positioned to meet the growing energy demand in key global markets while simultaneously promoting economic development and regional energy integration. The project’s alignment with Plan Sonora, Mexico’s national initiative focused on near-shoring, maritime decarbonization, and trans-Pacific energy connectivity, further highlights its importance in driving sustainable development.
For Sahara Group, this agreement aligns seamlessly with its overarching goal of expanding access to reliable and affordable energy sources, particularly in regions facing energy deficits. The company views LNG as a pivotal component in facilitating energy security and fostering economic growth. This collaboration signifies Sahara Group’s commitment to actively contribute towards a cleaner energy future. Beyond this agreement, Sahara Group has expressed its intention to explore similar opportunities that advance the energy value chain, underscoring its dedication to promoting sustainable development through strategic investments and partnerships.
Amigo LNG’s CEO, Muthu Chezhian, emphasized the shared commitment of both companies to accelerate the global shift towards cleaner and more sustainable energy solutions. As one of the first large-scale LNG export projects on Mexico’s west coast, Amigo LNG is not only positioned to meet rising energy demands but also to serve as a catalyst for economic progress and regional energy integration. The project’s location and capacity position it as a key player in the global LNG market.
Sahara Group’s off-take from Amigo LNG is projected to play a crucial role in bolstering Asia’s energy security over the next decade. As the region grapples with increasing energy demand, challenges in supply diversification, and efforts to reduce reliance on coal, Amigo LNG offers a stable, geopolitically neutral, and cost-competitive supply route. The commencement of LNG deliveries is scheduled for the third quarter of 2028, marking the beginning of a long-term partnership aimed at strengthening global energy security and promoting a sustainable energy future. The collaboration between Sahara Group and Amigo LNG stands as a testament to the power of strategic partnerships in addressing global energy challenges and fostering a more sustainable energy future for all.
