ConocoPhillips agreed Thursday to buy 2.2 million metric tons/year (mmty) of LNG from Mexico Pacific Ltd.’s (MPL) Saguaro Energia export terminal planned for the country’s west coast, pushing the project closer to a final investment decision (FID).

MPL CEO Ivan Van der Walt said ConocoPhillips’s commitment pushed the company’s sales volumes for trains one and two past what’s required to sanction them and puts the project in “oversubscribed territory.” Management said it would continue working on contracting for train three ahead of a FID on the project that is expected this year. 

ConocoPhillips agreed to buy liquefied natural gas from the project for a 20-year term on a free-on-board basis. The sales and purchase agreement also gives ConocoPhillips an option to...