Energia Costa Azul Launches, Tripling Mexico's LNG Export Capacity

Mexico's energy landscape has undergone significant changes with the launch of Energia Costa Azul Phase 1, a liquefied natural gas export terminal. The facility shipped its first cargo on July 8, adding 0.4 Bcf/d (billion cubic feet per day) of nominal export capacity to Mexico's total LNG export capacity.

This milestone marks a significant leap for Mexico in the global LNG trade, tripling the country's export capacity in one move. The terminal is located on Mexico's Pacific Coast and feeds its supply from the United States, which requires U.S. Department of Energy (DOE) regulatory approvals before exporting LNG.

The DOE has granted authorizations for 0.50 Bcf/d to countries with a free trade agreement with the U.S. and 0.44 Bcf/d to non-FTA countries. The Pacific Coast location provides a logistical advantage, enabling ships to head directly towards Asian buyers without navigating a canal or rounding a continent.