North America
5 March 2026
FID expected soon on blue methanol project
Written by Richard Hands
Transition Industries has signed a long-term firm natural gas supply contract for the Pacifico Mexinol project in Topolobampo, Sinaloa state with CFEnergía. CFEnergia has agreed to supply about 1.6 bcm/year of natural gas for the project, which it aims to buy in the US and supply it at market competitive prices by optimising the use of existing infrastructure.
Financing is coming from the World Bank’s International Finance Corporation, and Australian investment bank Macquarie, as well as support from the government of Sinaloa state.
The Pacifico Mexinol project envisages the construction of a large scale $3.3 billion methanol plant to produce approximately 1.8 million t/a of blue methanol and 350,000 t/a of green methanol at a site on the west coast of Mexico to feed the Pacific market (mainly Japan), and to “catalyse the development of derivative industries in Mexico and ensure additional domestic consumption of methanol” according to the CEO of Transition Industries. Japan’s MGC has contracted to take 50% of the plant offtake.
“The contract signing with CFEnergía represents the final outstanding commercial milestone, enabling the start of the construction phase, and confirming the timeline for Mexinol’s operational readiness in late 2029 to early 2030,” Transition Industries said in a statement.
“With the gas supply contract secured, Mexinol enters the execution phase, solidifying its position as a key project in the transition to net-zero emissions and establishing itself as a strategic industrial platform for innovation in Mexico.”
The current timescale for the plant envisages completion and operation by 2030.
