GFI LNG and Pilot LNG Partner Up for Salina Cruz LNG Development

GFI LNG and Pilot LNG have established a joint venture to develop, construct, and operate the Salina Cruz LNG terminal in Salinas del Márquez, Oaxaca, Mexico. This LNG bunkering and transshipment facility, strategically located on the Pacific side of the Panama Canal, is perfectly positioned to serve the North and Central American bunker and fuel markets, leveraging its prime location for efficient supply and distribution.

At full capacity, the facility is expected to produce 600,000 gallons of Liquefied Natural Gas (LNG) per day, equivalent to approximately 0.34 million Metric Tonnes Per Annum (MTPA). Operations are projected to begin in mid-to-late 2027. Designed with speed-to-market in mind, the project will feature modular, land-based liquefaction equipment and an optimized storage solution. It will also incorporate a floating storage unit (FSU) with an estimated capacity of 50,000 to 140,000 m³, which will be moored within the newly expanded breakwater at the Port of Salina Cruz.

Salina Cruz is set to capitalize on domestic gas supplies from the Veracruz Gulf region to access lucrative new markets along the Pacific Coast. This strategic move will enable Salina Cruz to supply LNG for marine fuel at key locations, including the Pacific entry of the Panama Canal and the major ports of Long Beach and Los Angeles in Southern California. Additionally, the company will cater to Central American power markets and provide trucked volumes within southwestern Mexico. Customers will benefit from LNG pricing linked to Henry Hub rates, ensuring competitive and stable pricing. This initiative supports Salina Cruz's expansion into high-value, diverse energy markets.

GFI, a Houston-based energy industry veteran, boasts a consistent 20-year track record of supplying natural gas, refined products, and electricity to the Mexican market. Led by seasoned LNG experts with an ample of experience in project development, Pilot is set to expand its LNG delivery services to both new and existing global markets, while building a diverse international project portfolio. GFI and Pilot are poised to begin front-end engineering and design for the project this quarter, with a development and permitting timeline expected to span 12 to 18 months. Both partners aim to announce a Final Investment Decision (FID) in the latter half of 2025, marking a significant milestone in their strategic expansion efforts.

Gomez highlighted the dual benefits of the planned infrastructure in Salina Cruz, noting that it will not only supply LNG to markets seeking cleaner energy but also generate significant community investment. He expressed enthusiasm about the collaboration with Pilot, emphasizing their expertise in LNG and marine operations as a key asset to the project. Jonathan Cook, CEO of Pilot, echoed this sentiment, praising GFI's deep local ties and commitment to infrastructure development. Cook emphasized that their partnership with GFI will enhance the project's progress, leveraging GFI's understanding of the community and government to ensure successful execution.