Mayer Brown advised POSCO International on its long-term LNG sale and purchase agreement (SPA) with Mexico Pacific. Under this LNG SPA, POSCO International has agreed to purchase 0.7 million tons per annum (MTPA) of LNG over a 20-year period on an FOB basis, to be supplied from the proposed Saguaro Energía LNG export facility in Puerto Libertad, Sonora, Mexico.

The Saguaro Energía LNG export facility will take natural gas from the Permian Basin in Texas, via the Sierra Madre Pipeline, and the facility is projected to provide the lowest landed price of LNG into Asia globally.

Nick Kouvaritakis, global head of LNG and global co-head of Energy at Mayer Brown, commented: “We are delighted to have advised POSCO on this important LNG SPA, where we were able to combine our Singapore team’s strong LNG SPA experience with US and Mexican regulatory advice from our colleagues in the Americas. It is always a pleasure working with the POSCO International team and we are pleased to have been able to support POSCO on this long-term supply agreement, having also advised on its LNG SPA with Cheniere in 2022. This transaction further builds on our team’s extensive experience advising LNG buyers on offtake agreements from North American LNG export projects.”

The team was led by partner Nick Kouvaritakis and included partners Sean Prior and Gabriel Salinas, counsel Nick Kendrick, and associates Ling Ern Seow and Marco Portillo Diaz.