Amigo LNG Secures Multi-Year LNG Sales Agreement with Sahara Group

Amigo LNG, a Mexican subsidiary of Singapore’s LNG Alliance, has recently finalized a significant multi-year sales and purchase agreement (SPA) with Sahara Group, a prominent energy and infrastructure conglomerate. The deal involves the supply of liquefied natural gas (LNG) from Amigo LNG’s liquefaction facility, currently under development on Mexico’s West Coast. This partnership is expected to enhance global energy access and security of supply, particularly in the dynamic Asian market.

The 20-year LNG SPA between Amigo LNG and Sahara Group entails Sahara purchasing 0.6 million tons per year (mtpa) of LNG from Amigo LNG’s export terminal in Guaymas, Sonora, Mexico. This collaboration represents a crucial step towards advancing global initiatives aimed at ensuring seamless energy access and security.

Wale Ajibade, Executive Director at Sahara Group, expressed his enthusiasm about the agreement, stating, “This partnership aligns perfectly with our mission to expand access to reliable and affordable energy, especially in underserved regions. LNG plays a vital role in ensuring energy security and driving economic growth, and we are excited to contribute to a cleaner energy future together.”

According to Sahara Group, the LNG offtake from Amigo LNG will play a pivotal role in bolstering energy security in Asia over the next decade. This comes at a critical time when the region is grappling with growing energy demand, supply diversification challenges, and the need to reduce coal dependency. The stable and cost-competitive supply route offered by Amigo LNG is expected to be a valuable asset in addressing these energy concerns.

Kola Motajo, Director of Sahara Group, emphasized the importance of collaborative efforts in enhancing energy access, stating, “It is crucial for all stakeholders to explore various avenues of collaboration to improve energy access. Sahara Group remains committed to promoting sustainable development through investments and partnerships that will accelerate global energy security.”

This long-term partnership between Amigo LNG and Sahara Group is hailed as a significant milestone in the global transition to cleaner energy. The agreement secures a reliable LNG supply from Mexico’s West Coast, strategically positioned for efficient delivery to rapidly growing markets in the Asia-Pacific and Latin America regions.

Muthu Chezhian, CEO of LNG Alliance, highlighted the shared commitment to sustainable energy, stating, “This agreement with Sahara Group reflects our joint dedication to accelerating the global shift towards cleaner, more sustainable energy. Amigo LNG’s LNG export project on Mexico’s west coast will not only meet the rising energy demands in key global markets but also drive economic development and regional energy integration.”

The commencement of LNG deliveries is scheduled for the third quarter of 2028. Amigo LNG’s 7.8 mtpa export facility, comprising two trains of 3.9 mtpa each, is currently in development in collaboration with the State of Sonora and Secretaría de Marina.

Situated near the Port of Guaymas, the project is expected to play a central role in Plan Sonora, Mexico’s initiative to promote near-shoring, maritime decarbonization, and trans-Pacific energy connectivity.

This agreement with Sahara Group follows Amigo LNG’s binding heads of agreement (HOA) for LNG offtake with Oman’s OQ Trading (OQT). The feed gas for the proposed facility is anticipated to be sourced from America’s Permian shale basin and transported to Mexico via existing pipeline networks.