Houston-based Pilot LNG LLC plans to develop a liquefied natural gas bunkering and transshipment terminal on Mexico’s West Coast to capitalize on the growing marine fuel market.
The company said it would develop Salina Cruz LNG in a joint venture (JV) with Houston-based affiliate GFI LNG LP, which has sold commodities in Mexico for more than 20 years.
The facility would be near Salinas Del Marqués and Salina Cruz in Oaxaca state. On the Pacific side of the Panama Canal, the facility would be positioned to supply North and Central American bunker and fuel markets, the JV said.
The terminal is being designed to produce 600,000 gallons/day of LNG, and would also include a 50,000-130,000 cubic meter floating storage unit. The JV said it expects a 12- to 18-month permitting timeline, and hopes to sanction the project in the second half of 2025. The aim is to start operations in 2027.
The project would provide LNG marine fuel at the Pacific entry of the Panama Canal and into Southern California. The developers are also hoping to sell into the Central American power markets and provide LNG via truck in southwestern Mexico.
The LNG produced by the facility is expected to be sold at prices linked to U.S. benchmark Henry Hub.
Pilot is developing another LNG bunkering port off the Texas coast in Galveston Bay with partner Seapath Group. The company filed applications for that facility with federal regulators earlier this year.
The Galveston Bay terminal would include liquefaction trains that could produce 600,000 gallons of LNG daily, along with two 3 million gallon LNG storage tanks and other infrastructure. If built, the Galveston Bay facility would be the region’s first dedicated to marine LNG fueling.
