Sahara Group, Amigo LNG sign gas purchase agreement

Sahara Group, a global energy and infrastructure conglomerate, has signed a landmark 20-year Liquefied Natural Gas Sales and Purchase Agreement with Amigo LNG S.A. de C.V., the Mexican subsidiary of Singapore-based LNG Alliance, to enhance global efforts to drive seamless energy access and security.

Under the terms of the agreement, Sahara Group will purchase 0.6 metric tonnes per annum of LNG from Amigo LNG’s export terminal in Guaymas, Sonora, Mexico.

 In a statement on Wednesday, an Executive Director at Sahara Group, Wale Ajibade, said the company is proud to partner with Amigo LNG in what it called a transformative venture.

“This agreement aligns perfectly with our goal to increase access to reliable and affordable energy, particularly in underserved regions. LNG is a critical enabler of energy security and economic growth, and we look forward to supporting a cleaner energy future together,” Ajibade said.

 Speaking at the execution ceremony, the Director, Sahara Group, Kola Motajo, disclosed that the energy conglomerate will explore similar opportunities in pursuit of its commitment to making a difference in advancing the energy value chain.

“It is imperative that all stakeholders explore several collaborative avenues to enhance energy access.

Sahara Group is unwavering in its dedication to promoting sustainable development through investments and partnerships that will help accelerate energy security across the globe,” Motajo said.

He added that the long-term partnership represents a major milestone in the ongoing global transition to cleaner energy.

The agreement, it was said, secures a reliable LNG supply from Mexico’s West Coast, strategically positioned for efficient delivery to fast-growing markets across the Asia-Pacific and Latin America.

LNG deliveries are set to begin in the third quarter of 2028.

The Chief Executive Officer of LNG Alliance, Muthu Chezhian, remarked, “This agreement with Sahara Group reflects our shared commitment to accelerating the global shift toward cleaner and more sustainable energy.

“As one of the first large-scale LNG export projects on Mexico’s west coast, Amigo LNG will not only help meet rising energy demand in key global markets but also serve as a catalyst for economic development and regional energy integration.”

The statement disclosed that Sahara Group’s off-take from Amigo LNG is expected to play a critical role in enhancing Asia’s energy security over the next decade.

“As the region navigates increasing energy demand, supply diversification challenges, and efforts to reduce coal dependency, Amigo LNG provides a stable, geopolitically neutral, and cost-competitive supply route.

“Amigo LNG’s 7.8 MTPA export facility comprises two trains of 3.9 MTPA each and is currently under development in close cooperation with the State of Sonora and Secretaría de Marina, Mexico. Strategically located near the Port of Guaymas, the project plays a central role in Plan Sonora—Mexico’s national initiative to promote near-shoring, maritime decarbonisation, and trans-Pacific energy connectivity,” the statement concluded.