Transition Industries, a global developer of net-zero carbon methanol and hydrogen projects, has taken a major step forward in Mexico.
The company and CFEnergía, a subsidiary of Mexico’s Federal Electricity Commission (CFE), have announced a long-term natural gas supply deal for the Pacifico Mexinol project near Topolobampo, Sinaloa.
Under the agreement, CFEnergía will supply approximately 160 million cubic feet per day of natural gas, sourced from the U.S., at market prices. This critical fuel will power Mexinol’s production of ultra-low carbon methanol, leveraging existing infrastructure to full effect.
The deal, subject to customary conditions, marks the final commercial milestone before construction begins. Mexinol is now on track for operational readiness in late 2029 to early 2030.
When operational, Mexinol—Transition Industries’ subsidiary—will be the world’s largest ultra-low carbon chemicals facility, producing around 1.8 million MT of blue methanol and 350,000 MT of green methanol annually. The US$ 3.3 billion project, strategically located on Mexico’s west coast, aims to meet growing demand for clean methanol across the Pacific and beyond.
“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.
The project positions Mexico as a reliable supplier of ultra-low carbon methanol to key markets in Asia, including Japan.
Mitsubishi Gas Chemical (MGC) of Tokyo has committed to purchasing roughly 50% of Mexinol’s production. Its location near the Port of Topolobampo strengthens export capabilities, supports domestic market growth, and enhances logistical competitiveness.
Mexinol also emphasizes sustainability and social impact. The facility will treat and use municipal wastewater rather than natural water sources.
