French energy company TotalEnergies has begun exporting liquefied natural gas (LNG) from Mexico to Asia. U.S. natural gas is liquefied on Mexico's western coast and then supplied to Asian markets including Korea and Japan.
According to the Nihon Keizai Shimbun (Nikkei) on the 9th, TotalEnergies plans to export 1.7 million tons of LNG annually to Asia over the next 20 years.
With uncertainty over natural gas supplies growing amid the recent war in the Middle East, international gas prices are also facing upward pressure. The industry expects that the new export route through Mexico could contribute to stabilizing LNG supplies in Asia. The route from Mexico's Pacific coast to Asia is shorter than the existing U.S.-Asia route, reducing transport time and costs.
TotalEnergies holds a 16.6% stake in "ECA LNG," an LNG liquefaction project being developed by U.S. energy company Sempra on Mexico's western coast. Japan's Mitsui & Co. plans to procure LNG through this project.
Nikkei reported that "the ECA LNG liquefaction facility began commercial operation in June, and the first tanker carrying LNG recently departed for Korea," adding that "TotalEnergies plans to expand LNG exports to Asian countries including Japan and Korea going forward."
According to Sempra, ECA LNG is the first LNG export project developed on Mexico's Pacific coast. It will liquefy natural gas produced from gas fields in the U.S. states of Texas and New Mexico, with an annual production capacity of 3.25 million tons.
