Mexico’s energy minister Luz Elana Gonzalez Escobar held talks with Indonesian officials about supplying the Southeast Asian country with LNG, BN Americas reported on September 23.

Indonesia and other countries have prioritised diversifying their LNG suppliers in the wake of the Middle East conflict that has sidelined supply from the United Arab Emirates and Qatar, which was the world’s second-biggest LNG exporter in 2025.

Meanwhile Mexico fledgling LNG sector is just beginning to take wing. The Central American country began exporting the super-chilled fuel in 2024 when New Fortress Energy’s Altamira FLNG began exporting LNG.

Mexico’s biggest LNG project, Sempra’s Energia Costa Azul began exporting super-cooled gas in July, with French supermajor TotalEnergies shipping the plant’s first LNG cargo, after producing first LNG a month earlier.

Phase One will boast a production capacity of 3.25mn tonnes per year (tpy) of LNG. If a positive final investment decision (FID) is taken on Phase Two it would significantly boost Mexico’s LNG sector, since it would add 12mn more tpy of production capacity.

Energia Costa Azul is located on Mexico’s west coast in Ensenada, Baja California. NewsBase Horizon, our intelligence and advisory division, views Mexico and Indonesia as natural trade partners. Energia Costa Azul’s ideal location offers a direct and fast path for delivery of cargoes to buyers in Asia.

Sempra has pushed back the commissioning of the facility due to the discovery of damage to the refrigerant compressors, noticed during an inspection following the export of the Mexican project’s first LNG cargo.

Commercial operations are now expected to begin before the end of the year, about one year after the project achieved mechanical completion.

Indonesia is in the midst of attempting to increase its LNG supply and diversify its portfolio as it attempts to increase domestic use of natural gas and reduce reliance on imported liquefied petroleum gas (LPG). In particular, Jakarta is attempting to switch household cooking from LPG to compressed natural good, requiring a ramp-up of LNG supply.

In June, Indonesia launched a mini-LNG plant in Tuban, East Java with a maximum production capacity equivalent to 55,300 tpy of LNG.