Mayer Brown advises OQ Trading on 15-year LNG Sale and Purchase Agreement with LNG Alliance relating to the Amigo LNG Project

Singapore – Mayer Brown advised OQ Trading (OQT) on its 15-year LNG sale and purchase agreement (SPA) with LNG Alliance relating to the Amigo LNG project.

Amigo LNG is a pre-FID LNG export project led by Singapore-based LNG Alliance which envisages the development of an LNG liquefaction facility in Guaymas, Sonora, Mexico. The Amigo LNG liquefaction facility is expected to re-export pipeline gas imported to Mexico from the United States. Deliveries of LNG from the project will commence in the second quarter of 2028.

OQT is the international energy and commodity trading arm of the Government of Oman.

Under the LNG SPA, approximately eight cargoes of LNG will be supplied annually on a free-on-board (FOB) basis from the first of two LNG trains of the Amigo LNG liquefaction terminal, which is expected to export a total of 7.8 MTPA of LNG produced from gas sourced from the Permian basin in the United States. The Amigo LNG project has a strategic position on the west coast of Mexico, giving it canal-free access to LNG markets in Asia.

Nick Kouvaritakis, global co-head of our Global Energy practice and global head of LNG, commented: "It has been a pleasure to advise OQT on a key long-term LNG SPA and we look forward to seeing the progress of the Amigo LNG project, which is very well positioned to deliver LNG to Asia. This transaction is the latest of a number of North American LNG transactions on which we have recently advised. Our team’s experience of advising on North American FOB LNG SPAs and our knowledge of the LNG market in Asia means we can advise LNG buyers very effectively on the terms available in the market and how key risks can be managed in downstream sales arrangements."

The Singapore-based team was led by partner Nick Kouvaritakis, and included counsel Nick Kendrick, and associates Akaash Singh and Ling Ern Seow.