
COASTAL Contracts Bhd’s massive US$1.14 billion (approximately RM4.64 billion) gas infrastructure project at the Ixachi field in Mexico has officially become effective following the execution of a key trust agreement with Mexican state-owned oil giant Petróleos Mexicanos (Pemex).
In a bourse filing today, the Sabah-based oil and gas services provider announced that its joint-venture consortium had, on May 19 (Mexico time), entered into the Trust Agreement alongside Pemex as the settlor and second beneficiary, together with a Mexican trustee bank. The consortium acts as the first beneficiaries.
“Following the execution and establishment of the trust agreement, the contract has now become effective,” Coastal Contracts said.
Under the terms of the project, Pemex was required to establish a secure trust structure to facilitate the payment of remuneration to the consortium for its engineering, procurement, construction (EPC), and operational services.
Payments to the consortium are expected to be funded directly through proceeds derived from marketable hydrocarbons produced from the Ixachi field, providing a secure payment mechanism for the Malaysian company.
The announcement follows a series of earlier disclosures by the group dated Dec 22, 2025, Feb 20, 2026, and March 25, 2026, tracking the formalization of the multi-billion ringgit deal.
To recall, the contract entails the construction of a gas sweetening plant, a separation plant with a capacity of 900 million standard cubic feet per day (mmscfd), related permanent infrastructure, and the provision of long-term gas sweetening services.
The project is expected to significantly anchor Coastal Contracts’ earnings visibility over the next eight years.
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