MEXICO CITY -- Transition Industries LLC, a developer of world-scale, net-zero carbon emissions methanol and hydrogen projects, and CFEnergía, a subsidiary of Mexico’s Federal Electricity Commission (CFE), announced the signing of a long-term firm natural gas supply contract for the Pacifico Mexinol (“Mexinol”) project, located near Topolobampo, Sinaloa.

Under this agreement, CFEnergía will supply approximately 160 million cubic feet per day (MMcfd) of natural gas over the long term, ensuring a critical input for Mexinol’s production of ultra-low carbon methanol. The supply will be provided by CFEnergía at market prices and will optimize the use of existing infrastructure. CFEnergía will source the natural gas from the USA. The agreement is subject to customary conditions.

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.

When it initiates operations, Mexinol, a subsidiary of Transition Industries, is expected to be the largest ultra-low carbon chemicals facility in the world - producing approximately 1.8 million MT of blue methanol and 350,000 MT of green methanol annually. With an investment exceeding USD 3.3 billion, its prime location on the west coast of Mexico meets emerging demand for clean methanol in the Pacific and beyond.

“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. The investment is expected to catalyze the development of derivative industries in Mexico and ensure additional domestic consumption of methanol,” said Rommel Gallo, CEO of Transition Industries.

A global-scale industrial asset

The project positions Mexico as a reliable supplier of ultra-low carbon methanol to strategic markets in Asia, including Japan, while also boosting the development of the domestic market and the Mexican chemical industry. Mitsubishi Gas Chemical (MGC), a world-class company based in Tokyo has committed to purchasing approximately 50% of the project's production.

The project's location, near the Port of Topolobampo in the municipality of Ahome, strengthens its export profile, facilitates access to global markets, and improves its logistical competitiveness, while also boosting domestic market development and the integration of the national chemical industry.

Economic and operational impact

Mexinol is committed to the highest environmental and sustainability standards, leveraging technology and innovation to treat and use municipal wastewater instead of seawater and other natural sources of water; supporting the long term socioeconomic development in the local area through generating more than 6,000 jobs in Sinaloa during construction and at least 450 permanent jobs (direct and indirect) in operations; and prioritizing local talent to strengthen the regional industrial ecosystem.

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.