Transition Industries and CFEnergía Secure Natural Gas Supply for Pacifico Mexinol Project
Transition Industries LLC, a global leader in net-zero carbon methanol and hydrogen projects, and CFEnergía, a subsidiary of Mexico’s Federal Electricity Commission (CFE), have signed a long-term natural gas supply contract for the Pacifico Mexinol (“Mexinol”) project. Located near Topolobampo, Sinaloa, this agreement marks a key milestone in the development of what is set to become the world’s largest ultra-low carbon methanol facility.
Long-Term Gas Supply Agreement
Under the new contract, CFEnergía will supply approximately 160 million cubic feet per day (MMcfd) of natural gas over the long term. This supply will provide a critical feedstock for Mexinol’s production of ultra-low carbon methanol. CFEnergía will source the natural gas from the United States and provide it at market prices, leveraging existing infrastructure to optimize efficiency. The agreement is subject to customary conditions but represents the final commercial step required to move the project into the construction phase.
The secured natural gas contract ensures a reliable and continuous supply of feedstock, a critical factor in maintaining production targets and operational stability. With this milestone achieved, Mexinol is now poised to begin construction with confidence in its operational readiness timeline, targeted for late 2029 to early 2030.
Project Overview: Pacifico Mexinol
Pacifico Mexinol, a subsidiary of Transition Industries, will be the largest ultra-low carbon chemicals facility globally. The plant is expected to produce approximately 1.8 million metric tons of blue methanol and 350,000 metric tons of green methanol annually. With a total investment exceeding USD 3.3 billion, the project combines scale, innovation, and sustainability to meet rising global demand for clean methanol.
The facility’s strategic location on Mexico’s west coast positions it as a critical supply hub for markets across the Pacific, including Asia, while supporting the growth of Mexico’s domestic chemical industry. The project also aligns with global decarbonization efforts by offering ultra-low carbon methanol, a cleaner alternative to conventional methanol.
Strategic and Economic Benefits
Rommel Gallo, CEO of Transition Industries, emphasized the project’s significance:
This contract reinforces Mexinol’s position as a key strategic investment, strengthening the long-term industrial competitiveness of Mexico and the state of Sinaloa. The project further creates bilateral economic development through the creation of jobs in both Mexico and the U.S., and the export and consumption of more than US$4 billion worth of U.S. natural gas.
Mexinol is expected to catalyze the growth of derivative industries in Mexico, generate domestic demand for methanol, and support regional economic development. The project will create more than 6,000 construction jobs in Sinaloa and at least 450 permanent operational roles, both direct and indirect. Additionally, it will prioritize hiring local talent, helping to strengthen the regional industrial ecosystem.
Global Market Impact
The Mexinol project positions Mexico as a reliable supplier of ultra-low carbon methanol to strategic global markets. For instance, Mitsubishi Gas Chemical (MGC), based in Tokyo, has committed to purchasing approximately 50% of the facility’s production. This ensures a steady export pipeline to Asia while simultaneously supporting the development of the domestic chemical market.
The plant’s proximity to the Port of Topolobampo in the Ahome municipality enhances its logistical capabilities, facilitating efficient export operations and providing a competitive advantage in global trade. This strategic location allows Mexinol to serve both international and domestic markets, strengthening Mexico’s chemical industry and creating a platform for future industrial expansion.
Environmental and Sustainability Commitments
Sustainability is a core component of the Mexinol project. The plant will implement advanced technologies to minimize environmental impact, including using treated municipal wastewater instead of seawater or other natural sources. This approach not only conserves vital water resources but also integrates innovative environmental practices into large-scale chemical production.
The facility is designed to meet the highest environmental standards, ensuring that ultra-low carbon methanol production contributes meaningfully to global decarbonization goals. By combining technology, innovation, and sustainability, Mexinol sets a new benchmark for chemical manufacturing in Mexico and globally.
Operational and Regional Development Impact
The project is expected to have a transformative effect on the Sinaloa region. Beyond creating thousands of construction and operational jobs, Mexinol will strengthen the local industrial ecosystem, fostering long-term socioeconomic development. The focus on local talent ensures that the benefits of the project extend to the surrounding communities, supporting education, workforce development, and regional industrial expertise.
The natural gas supply contract with CFEnergía provides the project with the foundation needed to execute its construction phase efficiently. With feedstock reliability secured, the project can adhere to its ambitious timeline, moving closer to its goal of becoming a global leader in ultra-low carbon methanol production.
SOURCE LINK: https://www.businesswire.com/
