Mexican developers backed by Big River Energy LLC are seeking approval from the Department of Energy (DOE) for a 4 million metric ton/year (mmty) LNG export project in Manzanillo that would be fed by U.S. natural gas.
Gato Negro Permitium Uno SAPI de CV filed a request with the DOE to import up to 0.647 Bcf/d of natural gas from the Waha hub in West Texas that would be delivered to the terminal for up to 20 years. It also requested approval to re-export up to 0.556 Bcf/d of liquified natural gas to free trade agreement (FTA) countries for 20 years, starting in 2027.
“Applicant plans on exporting natural gas to FTA countries through the duration of the 20-year term of the authorization requested herein, by negotiating and entering into one or more supply agreements of various durations with natural gas producers and marketers in the Permian Basin and potentially other production areas in Texas,” the developers wrote in a filing to DOE.
The terminal, dubbed Gato Negro Manzanillo LNG in the filing, would consist of up to four modular trains. Along with a jetty for waterborne exports, developers also have proposed building equipment to load trucks that could deliver LNG to the domestic market.
Gato Negro is an affiliate of Big River Energy, which has a separate authorization from the DOE to up to 13.58 Bcf/year of natural gas to Mexico until the end of 2024. The firm also has a pending application to export gas to Mexico by truck through 2030.
The project is proposed to be built in the state of Colima, but developers asked that the exact location be kept confidential. Colima also is home to Manzanillo LNG, a 3.8 mmty import terminal owned by a joint venture of Korea Gas Corp., Mitsui & Co. and Samsung.
Gato Negro plans to supply feed gas to the terminal on TC Energy Corp.’s Guadalajara Manzanillo pipeline through agreements for transport from either the Roadrunner Pipeline LLC, the Comanche Trail Pipeline LLC or the Trans-Pecos Pipeline LLC, according to the filing.
Growing feed gas demand from Mexican LNG terminals and an overall increase in U.S. imports south of the border is expected to lift Waha prices ahead of Gato Negro’s proposed startup in 2027. NGI’s Waha fixed forward prices Wednesday were $1.415/MMBtu for the balance of summer, compared with $2.239 in summer 2025.
Mexico has 7.5 mmty of LNG capacity under construction, according to NGI’s North American LNG Project Tracker. Most of the facilities are expected to use U.S. feed gas.
While new permits to export U.S. natural gas to non-FTA countries are currently paused as the DOE reviews its policies for approval, administrators have said it could still grant FTA permits.
The project developers told DOE staff the terminal could benefit FTA countries like Chile, Colombia, Costa Rica, Singapore and South Korea.
Typically, large-scale export projects require non-FTA permits to be considered commercially viable.
However, Mexican developers increasingly have been touting the opportunities of terminals on Mexico’s Pacific Coast to deliver low-cost gas from the Permian to Asian buyers cheaper and more quickly than most facilities on the Gulf Coast. South Korea also is traditionally one of the top three global LNG buyers.
“The Manzanillo location also will reduce consumption of maritime fuel for ships transporting LNG to countries located on the Pacific Ocean relative to those cargoes that might serve the same markets that are transported from the U.S. Gulf Coast,” the developers told DOE staff.
