Transition Industries secures gas supply from CFEnergía, enabling construction of Pacifico Mexinol, world’s largest ultra-low carbon methanol plant.
Transition Industries LLC and CFEnergía, a subsidiary of Mexico’s state-owned utility Federal Electricity Commission, have formalized a long-term, firm natural gas supply agreement that clears the way for the construction of the Pacifico Mexinol project in Topolobampo, Sinaloa. The agreement marks a decisive commercial breakthrough for the large-scale methanol initiative and enables the project to move fully into its construction phase.
Under the terms of the contract, CFEnergía will deliver approximately 160 million cubic feet per day (MMcfd) of natural gas over the long term to support Mexinol’s production of ultra-low carbon methanol. The supply will be provided at prevailing market prices, utilizing existing cross-border infrastructure to ensure cost efficiency and reliability. The natural gas will be sourced from the United States, reinforcing cross-border energy trade between the two nations. The agreement remains subject to standard closing conditions but represents the final outstanding commercial milestone required before construction activities commence. With this supply arrangement in place, the project timeline is confirmed, targeting operational readiness between late 2029 and early 2030.
Once operational, Mexinol—developed by Transition Industries—is expected to become the world’s largest ultra-low carbon chemicals complex. The facility is designed to produce around 1.8 million metric tons of blue methanol and an additional 350,000 metric tons of green methanol annually. With total investment projected to exceed USD 3.3 billion, the plant will be strategically positioned on Mexico’s west coast to meet rising global demand for low-carbon fuels and chemical feedstocks, particularly in Pacific markets.
According to Rommel Gallo, CEO of Transition Industries, the contract underscores Mexinol’s strategic importance to Mexico’s industrial development and competitiveness. Beyond strengthening Sinaloa’s economic profile, the project is expected to stimulate bilateral economic benefits, including job creation in both Mexico and the United States. It will also drive exports and consumption of more than USD 4 billion worth of U.S.-sourced natural gas. Additionally, the development is anticipated to spur investment in downstream derivative industries within Mexico, increasing domestic methanol usage and enhancing the national chemical value chain.
The project positions Mexico as a reliable global supplier of ultra-low carbon methanol, particularly to strategic Asian markets such as Japan. A major commercial endorsement has already been secured from Mitsubishi Gas Chemical, which has committed to purchasing approximately half of Mexinol’s output. This offtake agreement significantly enhances the project’s revenue certainty and long-term viability.
Located near the Port of Topolobampo in the municipality of Ahome, the facility benefits from strong export logistics and direct maritime access to international markets. Its proximity to shipping infrastructure strengthens its competitiveness while also facilitating domestic distribution across Mexico.
From an environmental and operational standpoint, Mexinol aims to meet the highest sustainability standards. The project will incorporate advanced technologies, including the treatment and reuse of municipal wastewater instead of drawing on seawater or freshwater resources. During construction, more than 6,000 jobs are expected to be created in Sinaloa, with at least 450 permanent direct and indirect roles supported during operations. Emphasis will be placed on hiring local talent to build a resilient regional industrial ecosystem.
With its natural gas supply secured, Mexinol advances into execution, positioning itself as a flagship project in the global transition toward net-zero emissions and as a transformative industrial platform for innovation in Mexico.
