Amigo LNG, Mexico Signs Long-Term Agreement with Malaysia, Establishing Guaymas, Sonora as the 'Gateway of Energy' to Asia

HOUSTON, Aug. 23, 2024 /PRNewswire/ — Amigo LNG SA de CV (Amigo LNG), a subsidiary of LNG Alliance Pte Ltd, Singapore, announced today that it has entered into a long-term LNG supply agreement with E&H ENERGY SDN BHD (“E&H”) of Malaysia.

Under the agreement, Amigo LNG will supply 3.6 MTPA (million tonnes per annum) of LNG to E&H for the Malaysian market over 20 years, beginning in Q3 2027. This agreement marks a significant milestone for E&H in the evolution of Malaysia’s Gas Market Liberalisation, regulated by the Energy Commission of Malaysia. The future outlook of the Malaysian gas market is positive, driven by increasing demand for gas, particularly in the Malaysian power sector.

Amigo LNG is a large-scale 7.8 MTPA liquefaction and export facility, and the only project in the region with both FTA and non-FTA permits from the US Department of Energy, valid until December 2027. The project is being developed in close cooperation with the State of Sonora and is located adjacent to the Port of Guaymas in Sonora, Mexico. Amigo LNG is a cornerstone of Sonora’s strategy to position itself as a hub for near-shoring, maritime decarbonization, and connectivity to Asian markets via Pacific shipping routes.

At the signing event in Kuala Lumpur, Dato’ Wan Adlil , Executive Director of E&H, stated, “This agreement is timely and aligns with the country’s direction towards gas market parity by 2027. E&H Energy aims to be a significant contributor in providing energy solutions to the country, particularly in the LNG and gas sectors in Peninsular Malaysia.”

“We are pleased to enter into this long-term agreement with E&H Energy. This partnership supports our strategy to focus on supplying the growing Southeast Asian LNG market and capitalizes on the unique logistics solutions that Amigo provides, optimizing shipping routes to the region,” said Muthu Chezhian, CEO of LNG Alliance Pte Ltd. The implementation of Amigo LNG underscores Mexico’s national commitment to a sustainable future. One of the initiatives includes using biomethane produced locally from organic waste-based feedstock in Sonora, which will be processed and blended with imported US natural gas. This approach reduces the project’s carbon footprint through waste reduction and promotes a closed-loop circular economy. As the first of its kind in the region, Amigo LNG effectively leverages the country’s commitment to ESG principles.

About LNG Alliance

LNG Alliance, established in 2013, is a project development, operations, and asset platform focused on LNG export and import terminal infrastructure. LNG Alliance leverages partnerships with key energy sector players, technology developers, and investment partners to structure and deliver reliable, affordable, and secure energy solutions to core operational markets in Mexico, Southeast Asia, South Asia, and Europe.

About E&H Energy

E&H Energy Group, established in Malaysia in 1993, has been active in the gas business since 2010. E&H Energy Group currently operates CNG and LNG facilities in Johor, with an expanding footprint in Peninsular Malaysia. In May 2018, E&H Energy Group became one of the first private companies in Malaysia to be awarded an LNG Import License under the Third-Party Access initiative of Malaysia’s Energy Commission.