Mexico Discussed LNG Exports With Indonesian Officials
The potential supply deal reflects Indonesia's shifting focus toward increasing domestic natural gas adoption.
Updated on Sept. 27, 2026 in Oil and Gas
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Mexico, which began exporting liquefied natural gas (LNG) in 2024, held high-level talks with Indonesian officials regarding future supply agreements. The discussions underscore Indonesia's strategy to diversify its energy sourcing as it transitions household cooking fuel from LPG to compressed natural gas.
Why it matters
For global energy operators, the dialogue signals Indonesia's intent to secure reliable, geographically diverse LNG sources to support its domestic policy goals. This shift toward natural gas may expand the total addressable market for exporters capable of meeting specific regional demand.
Mexico's Energia Costa Azul facility has a Phase One capacity of 3.25 million tonnes per year, with a potential 12 million tonne increase pending for Phase Two. Indonesia recently expanded its own infrastructure with a 55,300 tonne-per-year mini-LNG plant in Tuban.
The players
Luz Elana Gonzalez Escobar
The energy minister of Mexico overseeing the country's expanded export initiatives.
New Fortress Energy
An integrated energy infrastructure firm that operates the Altamira floating LNG export terminal.
Sempra
A major energy infrastructure company that operates the Energia Costa Azul export terminal in Baja California.
TotalEnergies
A multinational integrated energy company that executed the initial LNG shipment from the Energia Costa Azul facility.
The details
Mexico currently utilizes the New Fortress Energy Altamira floating terminal and the Sempra Energia Costa Azul facility in Ensenada to facilitate exports. Operations at Energia Costa Azul recently saw a transition phase, with the first cargo shipped by TotalEnergies in July 2026 despite earlier facility commissioning delays caused by refrigerant compressor damage.
Timeline
Mexico began exporting LNG in 2024.
Indonesia launched a mini-LNG plant in Tuban in June 2026.
Sempra Energia Costa Azul began exporting gas in July 2026.
Talks between Mexico and Indonesia were reported on September 23, 2026.
Commercial operations at Energia Costa Azul are expected by the end of 2026.
Market Landscape
The bilateral talks follow a pattern set by Indonesia's national energy diversification policy, which aims to transition domestic usage toward natural gas. This move highlights an emerging competitive dynamic as Mexico establishes its footprint alongside existing, established global LNG suppliers.
Exporters should monitor the anticipated start of full commercial operations at Energia Costa Azul by the end of 2026 as a bellwether for regional capacity. Energy analysts should track whether Indonesia proceeds with official supply tenders following these initial diplomatic discussions.
The takeaway
The move reflects a broader trend of emerging LNG exporters securing new trade pathways to support developing infrastructure shifts. Operators should track the commissioning schedule at Ensenada, as full commercial capacity is expected to arrive before the close of 2026.
Further reading
For more on the current state of global production, see our coverage in Oil and Gas.
Source note: This article includes information reported by Intellinews.
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