Amigo LNG, a subsidiary of Singapore's LNG Alliance, has finalized a significant long-term liquefied natural gas (LNG) supply agreement with Malaysia's E&H ENERGY. Under this 20-year deal, set to commence in the third quarter of 2027, Amigo LNG will supply 3.6 million tonnes per annum (mtpa) of LNG to E&H ENERGY for distribution in the Malaysian market.

The Amigo LNG facility, located in Sonora, Mexico, near the Port of Guaymas, boasts a total capacity of 7.8 mtpa. It is unique in the region for holding both Free Trade Agreement (FTA) and non-FTA permits from the U.S. Department of Energy, valid through December 2027. This permits Amigo LNG to efficiently export LNG, positioning the project as a crucial player in the global energy market.

The development of the Amigo LNG facility is a key component of Sonora’s strategy to enhance its role in near-shoring, maritime decarbonization, and improving connectivity to Asian markets. The facility’s strategic location facilitates efficient shipping routes across the Pacific to Asia, making it an integral part of this strategy.

The terminal will include two liquefaction trains: Train 1 with a capacity of approximately 4.2 mtpa and Train 2 with a capacity of 3.6 mtpa. The facility will source its feed gas from the Permian shale basins in the U.S., providing a reliable and cost-efficient supply. The facility will operate on a tolling model, where the responsibility for sourcing feed gas lies with the offtakers, who will then process the gas into LNG for delivery.

Production at the Amigo LNG facility is projected to begin in the second quarter of 2026. According to Dato’ Wan Adlil, Executive Director of E&H ENERGY, "This agreement is timely and aligns with Malaysia's goals for gas market parity by 2027. E&H ENERGY is committed to being a major contributor to the country's energy solutions, particularly in the LNG and gas sectors within Peninsular Malaysia."

Muthu Chezhian, CEO of LNG Alliance, expressed enthusiasm about the partnership, stating, "We are excited to enter into this long-term agreement with E&H ENERGY. This collaboration supports our strategy to focus on the burgeoning Southeast Asian LNG market and leverages the unique logistics solutions provided by Amigo LNG, optimizing shipping routes to the region."

This deal highlights Amigo LNG's pivotal role in addressing the increasing LNG demand in Southeast Asia, reinforcing its strategic significance in the global energy sector. By securing this long-term supply agreement, Amigo LNG solidifies its position as a key player in shaping the future of energy distribution in the region.