Methanol Mega-Project in Sinaloa Seen Boosting U.S. Natural Gas Exports to Mexico’s West Coast

More natural gas demand is set to come from Mexico’s west coast with the announcement of Pacífico Mexinol, a giant methanol facility in Sinaloa state.

Houston-based Transition Industries LLC has signed an engineering, procurement, and construction (EPC) contract to develop the plant with an international consortium that includes Samsung E&A Co. Ltd., Grupo Samsung E&A México SA de CV, and Techint Ingeniería y Construcción.

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The Pacífico Mexinol project would be located in Ahome, Sinaloa, and would produce 350,000 tons of green methanol and 1.8 million tons of blue methanol, which is derived from natural gas using carbon capture and storage.

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U.S. Ambassador to Mexico Ronald Johnson said on social media that it was “a major milestone for the Mexinol project in Sinaloa, which will become the world’s largest ultra-low carbon methanol plant.” He said it would be backed by $4 billion in U.S. natural gas exports.

A Transition spokesperson told Natural Gas Intelligence that the plant would use 162 MMcf/d of natural gas.

TC Energy Corp.’s $1.2 billion El Encino–Topolobampo natural gas pipeline started operations in 2018, with capacity to supply 670 MMcf/d of U.S. gas to Sinaloa. The pipeline can ship in gas produced in the Permian Basin in West Texas and southeastern New Mexico.

The spokesperson told NGI that an agreement with Comisión Federal de Electricidad is in place for the natural gas. CFE holds the capacity on the pipeline and anchored its development.

The Topolobampo, Sinaloa area has been designated by the Mexican government as a Polo de Desarrollo para el Bienestar, or a Development Hub for Wellbeing. The program grants projects access to government financing and infrastructure. The project is also backed by the International Finance Corp., a member of the World Bank Group.

The methanol plant would join other natural gas users in the area. In early 2024, Spain’s Iberdrola SA started operations at the 766 MW Topolobampo III natural gas combined-cycle plant in Mexico’s Sinaloa state. Sempra also is eyeing Sinaloa for its proposed 3.5 million tons/year Vista Pacifico LNG export project.

Transition CEO Rommel Gallo said the signing of the contract “sets us on course to begin construction in 2025 and fulfill our unwavering commitment to building the world’s most significant large-scale sustainable project in Mexico.” Operations could begin by 2029, according to the company.

A singing ceremony was attended by officials from federal, state, and municipal governments, as well as ambassadors from countries involved in the multinational project. Transition expects to sign additional strategic agreements and achieve other milestones throughout this summer, the company said.