Mexico’s Amigo LNG has agreed to a 20-year sales and purchase agreement (SPA) with Gunvor Singapore, the commodity trading house announced on August 19.

Under the terms of the deal, Amigo LNG will supply 0.85mn tonnes per year (tpy) of the super-chilled fuel to the independent commodity trading house.

LNG cargo deliveries are slated to commence once commercial operations begin. Amigo LNG, which is a joint venture of Texas-based Epcilon LNG and Singapore’s LNG Alliance, is scheduled to bring its first liquefaction train online in the second half of 2028.

“We are delighted to welcome Gunvor as one of our key foundation offtakers. This agreement underscores the confidence global energy players place in AMIGO LNG’s ability to deliver reliable, flexible, and competitive LNG to international markets,” Dr. Muthu Chezhian, CEO of LNG Alliance said in a statement.

“Gunvor is committed to securing long-term LNG supplies to meet the evolving energy needs of our customers worldwide. Partnering with AMIGO LNG aligns with our strategy of diversifying supply sources and supporting the global transition toward cleaner energy,” Kalpesh Patel, Co-Head of LNG Trading of Gunvor said.

It marks the second 20-year SPA Amigo has signed in recent months. In April, Amigo also reached a long-term deal with Sahara Group to provide it with 0.6mn tpy.

Construction of the LNG terminal, located in the port city of Guaymas in Mexico’s northwestern state of Sonora, is expected to begin next in 2026.

Amigo LNG benefits from an ideal strategic location on Mexico’s west coast offering it a direct shipping route to energy-hungry Asian markets as well as buyers in Latin America.

The facility is also located close to the Permian Basin in the US, which provides cheap feed gas for the export terminal.

Upon completion Amigo LNG will boast a production capacity of 7.8mn tpy featuring two liquefaction trains.