ExxonMobil has signed a key sales and purchase agreement with Mexico Pacific for the additional supply of 1.2 million tonnes per annum of liquefied natural gas.

The Mexican player confirmed the deal on Monday and noted that the LNG will be supplied from Train 3 of its Saguaro Energia project Mexico’s west coast.

“Under the Train 3 LNG SPA, ExxonMobil LNG Asia Pacific (a subsidiary of ExxonMobil) will purchase LNG on a free-on-board basis over a 20-year term,” Mexico Pacific noted.

The company said ExxonMobil also has an option for an additional 1 million tpa of gas supplies from Train 4 of the LNG project.

The new LNG deal follows separate SPA’s signed between ExxonMobil and Mexico Pacific last year for supplies from the project’s Train 1 and 2.

Mexico Pacific chief executive Van der Walt noted that the company remains focused “on initially taking final investment decision (FID) on Trains 1 and 2”, and the deal with ExxonMobil “concludes the LNG sales required for a subsequent Train 3 FID expected this year”.

“With key contracting and permits in place across the terminal and pipeline, we are well positioned to sanction the project, connecting Permian basin gas with the world’s largest LNG markets in Asia to provide reliable and cost-effective LNG to support the energy transition,” he said.

Peter Clarke, ExxonMobil’s head of global LNG business said that “long-term contracts play an essential role in underpinning the investments that will be required to advance the energy transition.”