Woodside signs 20-year LNG deal with Mexico Pacific

Australian miner Woodside Energy has signed a deal with energy company Mexico Pacific to buy 1.3 million tonnes of liquefied natural gas (LNG) a year for two decades.

Under the terms of the deal, Woodside will buy the LNG from Mexico Pacific's Saguaro Energia LNG project, located in Sonora, Mexico on a free-on-board basis with pricing linked to US gas indices.

The deal is subject to Mexico Pacific taking a final investment decision on a proposed third train at the project, which is expected in the first half of 2024, with commercial operations expected to start in 2029, Woodside said in a statement

"LNG is expected to play a critical role in the energy transition and long-term demand is anticipated to remain strong. This agreement is consistent with Woodside's strategic objective of building global scale and flexibility in its LNG portfolio."

Reporting by Frank Prenesti for Sharecast.com