Transition Industries Secures Gas Supply for $3.3 Billion Mexinol Project in Mexico

Transition Industries has secured a long-term natural gas supply agreement with CFEnergía, enabling construction of its $3.3 billion Pacifico Mexinol methanol project in Mexico.

(P&GJ) — Transition Industries has signed a long-term natural gas supply contract with CFEnergía, a subsidiary of Mexico’s Federal Electricity Commission, clearing the final commercial hurdle for construction of the Pacifico Mexinol methanol project near Topolobampo, Sinaloa.

Under the agreement, CFEnergía will supply approximately 160 million cubic feet per day of natural gas on a long-term basis. The gas, sourced from the United States and delivered at market prices, will serve as a primary feedstock for the planned ultra-low carbon methanol facility.

The contract allows the project to move into its construction phase, which is expected to begin in the second quarter of 2026. Startup is targeted for late 2029 to early 2030.

Pacifico Mexinol, a subsidiary of Transition Industries, is designed to produce approximately 1.8 million metric tons per year of blue methanol and 350,000 metric tons per year of green methanol. Total investment in the facility is expected to exceed $3.3 billion.

The project will be located near the Port of Topolobampo, providing export access to Pacific markets, including Asia. Mitsubishi Gas Chemical has committed to purchase roughly 50% of planned production.

“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.

During construction, the project is expected to generate more than 6,000 jobs in Sinaloa and approximately 450 permanent operational roles once online.

With gas supply secured, the development advances as one of the largest planned methanol facilities globally and a significant new source of long-term U.S. natural gas demand.