Wednesday, October 14

The Amigo LNG Case: Why Did Mexico Allocate 36 Hectares of the Gulf of California for a US Gas Project?

Overview of the Amigo LNG Project

The Amigo LNG terminal, proposed for construction at Bahía Catalina in southern Guaymas, Sonora, is set to become a significant player in the liquefied natural gas (LNG) market. Since its introduction in 2024, various environmental groups and advocacy organisations have raised alarms about the potential risks this facility poses to the ecosystems, livelihoods, and biodiversity of the Gulf of California. Despite these concerns, the federal government has allocated 36 hectares of maritime area to facilitate the terminal’s construction and operation.

The project is spearheaded by Amigo LNG S.A. de C.V., a joint venture between Texas-based Epcilon LNG LLC and Singapore’s LNG Alliance. According to the developers, this facility will be the first large-scale LNG terminal on Mexico’s west coast, providing direct maritime access to Asia-Pacific and Latin American markets, thereby enabling the transport of natural gas produced in the United States to international markets.

Government Support and Controversy

Earlier this year, President Claudia Sheinbaum heralded the terminal as a crucial component of Mexico’s private investment strategy linked to port expansion. She committed to expediting the necessary permits for the project’s initiation. However, environmental organisations have raised concerns about the inconsistencies and discretionary nature of the permits granted.

In April of the previous year, the National Port System Administration of Guaymas (ASIPONA Guaymas), an entity under the Secretariat of the Navy, provided Amigo LNG with a contract for the partial transfer of rights and obligations, permitting the use of around 36 hectares of maritime zone in Bahía Catalina for the terminal’s construction and operation. Official documentation revealed that this transfer was executed via direct award, bypassing public tender processes, on the grounds that the company owns adjacent land, allowing such a legal arrangement.

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Environmental Concerns and Legal Challenges

Environmental advocates from Defensa Ambiental del Noroeste argue that for a direct award to be legitimate in such cases, specific criteria must be met, including the submission of a certified copy of the environmental impact assessment permit from the Agency for Safety, Energy and Environment (ASEA). According to ASEA, Amigo LNG submitted its request for this permit on 26 November 2025, with formal approval only being granted on 13 April of this year.

Compounding the issue, Epcilon LNG’s application to the U.S. Department of Energy, published on 24 July 2026, claimed that Amigo LNG had already secured the necessary permits from various Mexican governmental bodies. Discrepancies in timelines have become crucial amid a legal challenge initiated by Nuestro Futuro in March 2026, questioning the evaluation process of the environmental impact assessment for Amigo LNG.

Judicial Proceedings and Suspension of Operations

In this context, Nuestro Futuro contended that the environmental assessment lacked sufficient information to adequately evaluate the risks posed by the LNG terminal to the Gulf’s ecosystems. During the legal proceedings, ASEA informed the court that, as of that date, no permits had been issued to Amigo LNG. Subsequently, the courts granted a definitive suspension to halt environmental approvals pending the resolution of the legal challenge.

ASEA clarified that by the time the suspensions were issued, the relevant permit had already been granted and notified, thus complicating compliance with the order to refrain from issuing it. The permit was not part of the original dispute but was introduced later in the case, which is still under consideration by the Federal Judiciary.

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Implications for the Gulf of California

Amigo LNG is not an isolated initiative; it is part of a broader trend involving foreign-operated terminals and plants aiming to transform the Gulf of California into a strategic route for exporting LNG from the United States to Asian markets. This trend arises from stringent environmental laws on the U.S. West Coast, which hinder the construction and operation of gas treatment and export infrastructure. With comparatively relaxed regulations, Mexico presents a lucrative opportunity for such ventures.

The Amigo LNG project aims to export over 5.1 million tonnes of liquefied gas annually, potentially bringing 175 LNG carriers into the Gulf each year. Environmental groups warn that this constant influx of large vessels could lead to underwater noise pollution, risks of collisions with marine mammals, displacement of wildlife, and the introduction of invasive species, alongside associated dredging impacts, sediment issues, water quality concerns, and greenhouse gas emissions.

Protecting Biodiversity in the Region

The Gulf of California is a biodiversity hotspot, home to around 40% of marine mammals and a third of the world’s cetaceans, including endangered species such as the vaquita marina and the iconic mobula munkiana. Local environmental organisations assert that the fate of this rich biodiversity must not be jeopardised by a process riddled with inconsistencies. They demand clarity on whether any information regarding the project has been concealed, altered, or mismanaged to push the initiative forward despite ongoing legal challenges.

As the legal proceedings continue, the implications of the Amigo LNG project for the Gulf of California remain a pressing concern, raising fundamental questions about environmental stewardship and regulatory integrity in the face of economic development.

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