A subsidiary of Abu Dhabi's 2PointZero Group has signed a 20-year liquefied natural gas (LNG) deal with Mexico’s Amigo LNG, as it diversifies its supply sources.
International Resources Holding (IRH), the natural resources investment platform of 2PointZero Group, will purchase one million tonnes per annum of LNG from the project in Guaymas, Sonora, it said in a statement on Wednesday.
Located on Mexico’s west coast, the Amigo LNG project provides direct shipping access to Asian markets without reliance on the Panama Canal.
Deliveries are expected to begin when the project’s liquefaction train enters commercial operations in the second half of 2028.
The deal will help "strengthen global energy security while ensuring competitive and dependable LNG supply for international markets", said Ali AlRashdi, chief executive of IRH.
"By securing competitively priced Pacific Basin supply, we are enhancing the resilience and diversification of our global trading platform while expanding our ability to serve key growth markets," he said.
“Mexico’s west coast offers a structurally resilient LNG supply route to Asia that is not dependent on major maritime chokepoints such as the Panama Canal."
The Panama Canal is operating at top capacity, officials said earlier this month, mainly because of the Iran war.
The LNG market is facing an upheaval amid the effective closure of the Strait of Hormuz, through which a fifth of the world's LNG passes, as well as a production pause by key suppliers in the Gulf, such as Qatar.
Iranian missile strikes on Qatar's Ras Laffan industrial centre last month knocked out about 17 per cent of the country's LNG export capacity. The disruption could last three to five years, QatarEnergy chief executive Saad Al Kaabi said earlier this month. Qatar produces about a fifth of the world's LNG supply.
Separately, operations have also been disrupted at the Wheatstone LNG project in Western Australia, which is operated by US energy major Chevron, due to damages caused by tropical cyclone Narelle last week. The company said it will take several weeks to resume full production of 8.9 million tonnes per annum at the facility.
The deal with IRH "highlights the growing role Mexico can play in strengthening global LNG supply chains", said Muthu Chezhian, chief executive of Amigo LNG. "By connecting Mexico’s Pacific coast with ... energy partners such as IRH, we are establishing efficient new LNG supply routes”.
The 2PointZero group was created through the merger of Abu Dhabi investment vehicles – tech-focused holding company Multiply Group, food and agriculture investment firm Ghitha, and 2PointZero – in November last year.
It focuses on high-growth sectors such as mining, food security, advanced energy and renewables.
IRH is a global mine-to-market platform investing in minerals critical to the energy transition and technological advancement. Its model covers upstream exploration, midstream processing, and downstream distribution, targeting minerals such as copper, cobalt, nickel, manganese, graphite, rare earth metals, tin, tantalum, and tungsten.
