① A subsidiary of Abu Dhabi Investment Holding Group's 2PointZero has signed a 20-year LNG supply agreement with a Mexican company to purchase one million tons of LNG annually; ② The LNG project is located on the west coast of Mexico and is expected to commence commercial operations in the second half of 2028; ③ This agreement aims to provide reliable LNG supplies to the international market, addressing challenges such as the blockade of the Strait of Hormuz and production disruptions in Qatar.
Following a statement released on Tuesday by Abu Dhabi Investment Holding Group's 2PointZero regarding the acquisition of a U.S. natural gas infrastructure company, IRH, its natural resources investment platform, announced in a statement yesterday that it had signed a 20-year liquefied natural gas (LNG) supply agreement with Mexico’s Amigo LNG.
Under this agreement, IRH will annually procure one million tons of liquefied natural gas from the Amigo LNG project.
The LNG project is located on the west coast of Mexico, offering direct access to the Asian market without passing through the Panama Canal. Its liquefaction production line is expected to begin commercial operations in the second half of 2028, at which time the first deliveries will be initiated.
IRH CEO Ali AlRashdi explained that this agreement represents an effort to diversify energy supply channels, which will help enhance global energy security and ensure reliable LNG supplies for the international market.
He added that the west coast of Mexico offers a supply route to Asia that does not rely on critical maritime passages like the Panama Canal.
Earlier this month, officials from the Panama Canal Authority stated that the canal is currently operating at full capacity due to the impact of the Iran conflict.
Although the UAE itself is a major oil and gas producer, and its neighbor Qatar is the world’s second-largest LNG exporter, recent conflicts in the Middle East have led to production suspensions by key suppliers such as Qatar. The Strait of Hormuz, a crucial passage for one-fifth of global LNG transportation, has been blocked, posing unprecedented challenges to the global LNG market.
Last month, Iran launched a missile attack on Qatar’s Ras Laffan Industrial City, destroying approximately 17% of the country’s LNG export capacity. Saad Al Kaabi, CEO of Qatar Energy, previously stated that this production disruption could last three to five years.
IRH is a global natural resources investment platform focusing on investments in mineral resources crucial to energy transition and technological advancement. Its operations cover upstream exploration, midstream processing, and downstream distribution, with a primary focus on minerals such as copper, cobalt, nickel, manganese, graphite, rare earth metals, tin, tantalum, and tungsten.
Editor/Doris