The US Department of Energy (DOE) has temporarily paused the expiration of a key LNG export license for project developer Mexico Pacific.
Mexico Pacific (MXP) filed in June for an extension on its license to export to countries that do not have free trade agreements with the US (non-FTA), which expired on 14 December. If granted, MXP would have an additional seven years from that date to begin exporting from its 15mn t/yr Saguaro Energia LNG facility in Mexico's Sonora state.
DOE tolled, or paused, the permit's expiration because of an ongoing proceeding related to a change in the project's ownership organization. MXP first filed a notice of a change in control in March, which environmental and consumer advocacy groups have since contested.
The firm informed DOE that Delaware-registered Windsor Cliff Sponsor, previously called Mexico Pacific Holdings, owned a 70pc stake in MXP and sought to maintain confidentiality of three minority owners that each hold 10pc stakes.
But in a back-and-forth with DOE, MXP ultimately told federal regulators that the minority owners were two companies based in Florida and one a Mexican national. A subsequent filing in late November showed that the Mexican national assigned their interest to a limited partnership based in Canada.
The public comment period for MXP's latest supplemental ownership filing closes on 29 December. DOE will decide on the MXP's non-FTA license extension after the ownership proceeding is completed, according to a 12 December filing.
The project would buy Permian basin gas from west Texas, requiring the construction of the proposed transnational 500-mile Sierra Madre pipeline. The pipeline has not reached a final investment decision, has been tied up in multiple lawsuits and lacks key state and municipal approvals.
