Coastal
Contracts secured a large-scale engineering, procurement and
construction agreement with Pemex expanding its role in developing
the Ixachi onshore gas field, one of Mexico's most strategic
natural gas assets, Mexico Business News
reported.
The arrangement, signed on December 19, 2025, as reported by
Malaysian media outlets, has an aggregate value of approximately
$1.14bn and was awarded to a consortium led by Coastoil Dynamic,
Coastal's Mexican joint-venture company, alongside Sistemas
Integrales de Compresión and Nuvoil.
According to filings disclosed by Coastal Contracts to Bursa Malaysia and reported by Malaysian and international media, Coastoil Dynamic will act as consortium leader and will be responsible for contract administration, billing and receipt of payments. All financial interest and economic benefits from the project will be fully attributable to the Mexican joint venture.
Under the contract, the consortium will execute EPC of a new gas sweetening plant with 150mn cubic feet daily processing capacity at the Ixachi Field, plus design, construction and commissioning of permanent associated infrastructure.
Beyond the sweetening plant, the scope includes constructing a new separation facility capable of processing up to 900mn cubic feet daily of gas and 56,000 barrels daily of oil, alongside a new condensate pipeline for petroleum transportation. The agreement also includes gas sweetening services for eight years and ten months, with construction timelines for various facilities ranging between 300 and 517 days. The service period will commence once the gas sweetening plant is completed and formally accepted.
Whilst Coastal and partners have been active in the Ixachi Field since 2021, the company has clarified through disclosures and subsequent reporting that this contract is not a renewal of the original agreement awarded four years ago. The initial contract, signed in January 2021, covered EPC, operation and maintenance of an onshore gas sweetening facility at Ixachi and was later extended through addenda to increase capacity and prolong service periods.
The December 2025 contract, however, represents a new and larger development phase. Media outlets including The Star, The Malaysian Reserve and The Edge Malaysia have highlighted the new agreement expands both infrastructure footprint and financial scale of Coastal's participation, adding major separation capacity, new pipelines and longer-term integrated services component absent from the original 2021 scope.
Under the terms, Pemex is required establishing a trust account within 30 business days of signing to facilitate consortium payments, with funding sourced directly from hydrocarbon sales produced at the Ixachi Field. Coastal Contracts stated the contract will not affect its issued or paid-up capital, but is expected contributing positively to earnings and net assets from the 2026 financial year onward and throughout contract duration.
Executive chairman Ng Chin Heng described the award as reflecting Pemex's continued confidence in the group's technical capabilities, operational performance and long-standing partnership with Nuvoil in Mexico. He added the deal strengthens Coastal's strategic role within Pemex's production value chain and supports Mexico's broader objectives stabilising and expanding domestic natural gas processing capacity.
Ixachi is considered one of Pemex's most important onshore discoveries in recent decades and plays central role in Mexico's efforts reducing natural gas imports.
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