GFI LNG (GFI) and Pilot LNG (Pilot) have announced the formation of a joint venture to develop, construct, and operate a small-scale LNG terminal in Salina Cruz, Oaxaca, Mexico. This strategic partnership aims to establish a significant LNG bunkering and transshipment terminal at Salinas del Márquez, leveraging its prime location on the Pacific side of the Panama Canal.
Salina Cruz LNG Joint Venture Project Overview
The Salina Cruz LNG Joint Venture (JV) will spearhead the development of this advanced LNG terminal, designed to produce approximately 600,000 gallons of liquefied natural gas (LNG) per day, which is equivalent to around 0.34 million metric tonnes per annum (MTPA). The partners anticipate that the terminal will begin operations in mid-to-late 2027.
The facility will incorporate modular, land-based liquefaction technology and an optimized storage solution to ensure efficiency and scalability. A key component of the project is the floating storage unit (FSU), which will have a capacity ranging from 50,000 to 140,000 cubic meters. This FSU will be moored inside the newly expanded breakwater at the Port of Salina Cruz, allowing for robust and secure storage and transfer operations.
Market and Supply Advantages
The terminal will utilize domestic Mexican gas supplies from the Veracruz Gulf region, targeting high-value markets along the Pacific Coast. Key markets include LNG marine fuel deliveries at the Pacific entry of the Panama Canal and ports in Southern California, such as Long Beach and Los Angeles. Additionally, the terminal will cater to Central American power markets and local trucking volumes in southwestern Mexico. Customers can expect competitively priced LNG linked to the Henry Hub index.
GFI, a Houston-based energy company with over 20 years of experience in natural gas, refined products, and electricity sales into Mexico, views this project as a significant milestone. “The infrastructure planned in Salina Cruz will not only provide LNG to growing markets seeking cleaner fuel but will also bring millions in direct community investment to the region,” said Gomez, Founder of GFI. “We are pleased to be adding the LNG and marine expertise of Pilot to the development team. Thanks to our new partnership with Pilot, we look forward to bringing this facility to Salina Cruz.”
Pilot LNG, led by LNG veterans with extensive project development experience, is dedicated to expanding LNG access globally. Jonathan Cook, CEO of Pilot, emphasized the importance of the local connection: “With long personal ties to the region, the GFI team is dedicated to helping bring infrastructure development to Salina Cruz and brings a critically necessary understanding and appreciation for the local community and government. We are pleased to be working with GFI to help progress this project.”
GFI and Pilot will initiate front-end engineering and design development for the project within this quarter. The partners anticipate a development and permitting timeline of 12-18 months and plan to announce a Final Investment Decision (FID) in the latter half of 2025.
About GFI LNG LP
Headquartered in Houston, TX, GFI LNG LP manages a diversified portfolio of energy businesses. With over 40 years of collective experience across the energy value chain, GFI is known for its forward-thinking approach and innovative technologies to capitalize on market opportunities.
About Pilot LNG LLC
Pilot LNG LLC is a clean energy solutions company specializing in the development and operation of LNG import, fuel, and bunkering terminals. Focused on meeting the growing demand for natural gas, Pilot aims to establish global LNG terminal and logistics opportunities to supply clean-burning LNG to the expanding fleet of LNG-fueled vessels.
This new joint venture marks a significant step in enhancing LNG infrastructure and supply capabilities in a strategically important region.
Source Salina Cruz LNG