High risk, heavy toll - Why MUFG Should Reconsider Mexico Pacific's Saguaro LNG Project

The proposed Saguaro Energía LNG export terminal in Sonora, Mexico, has generated significant environmental, financial, and ethical concerns. The project will become one of North America’s largest liquefied natural gas (LNG) export facilities, shipping gas from the U.S. Permian Basin to Asian markets through pipelines and marine transport. The terminal is expected to export up to 30 million metric tons annually and cost more than US$15 billion.

The project threatens the Gulf of California, a UNESCO World Heritage region known for its rich marine biodiversity, including whales, dolphins, sea turtles, and endangered species. Increased industrial activity, shipping traffic, and pipeline construction could permanently damage fragile ecosystems.

In addition, analysts warn that global demand for natural gas may decline after 2035 as renewable energy expands, potentially turning LNG infrastructure into stranded assets.

Read the brief to find out more.