Gray Whale spotting in the Gulf of Baja California | Photo by Cesar Medina Davila

The Gulf of California, nicknamed "the Aquarium of the World" by Jacques Cousteau, is one of the most ecologically significant marine ecosystems on Earth. Home to an astounding range of biodiversity, including many endemic and endangered species, it is a place that should be protected at all costs. But a fossil fuel mega-project called Saguaro Energia LNG, proposed by Houston-based Mexico Pacific Ltd., is now threatening to irreversibly damage this delicate ecosystem and the communities that depend on it.

This blog takes a critical look at the Saguaro Project, its investors, its environmental impacts, and why projects like these exemplify how Global South countries like Mexico are too often treated as resource extraction zones by foreign powers and corporations.

What is the Saguaro Project?

The Saguaro Energia LNG project is a massive liquefied natural gas (LNG) export facility slated for construction in Puerto Libertad, Sonora, on the eastern shore of the Gulf of California, operated by Oneok. Its purpose? To transport natural gas extracted from the Permian Basin in Texas to Asian markets, bypassing the Panama Canal via a shorter shipping route through the Gulf.

The project is led by Mexico Pacific Ltd., a company that, despite its name, is neither Mexican-owned nor rooted in Mexican interests. Its principal backer is Quantum Capital Group, a Houston- and New York-based private equity firm heavily invested in fossil fuels.

A Foreign Project in Disguise

Let's be clear: Mexico Pacific Ltd. is an American company. The inclusion of "Mexico" in its name is a branding choice, not an indication of ownership or national alignment. The true driving force behind this project is a foreign capital machine that is simply exploiting Mexican territory and regulatory frameworks to expand its fossil fuel empire.

This is a textbook case of extractivism, where corporations from wealthier countries exploit the natural resources of poorer or less-regulated nations, often leaving behind environmental devastation and minimal economic benefit for local communities.

Why Are These Projects Coming to Mexico?

Mexico offers a perfect storm of conditions for projects like Saguaro: abundant natural landscapes, lax environmental oversight, and a political climate in which corruption and weak enforcement often allow destructive projects to move forward without proper consultation or scrutiny.

In regions like Sonora, foreign energy companies can promise jobs and investment, while avoiding the strict environmental regulations that would apply in their home countries. It’s a form of environmental colonialism, an old model dressed up in the language of energy security and economic growth.

The Illusion of Greenwashing

Quantum Capital's own Environmental, Social, and Governance (ESG) report touts sustainability as a core value. Yet, the same report only briefly mentions Saguaro as a shipping shortcut, completely omitting the fact that this "shortcut" runs through protected marine areas of global ecological importance.

This is greenwashing, plain and simple: using superficial language about sustainability to obscure the truth about a project that undermines every stated environmental principle.

Pod of dolphins jumping over the sea surface — Pod of Dolphins in the Gulf of California | Gett Images

Who Really Profits?

Ownership matters: Despite the name Mexico Pacific, the company is U.S.-based, and the main investor, Quantum Capital, is headquartered in Houston and New York. Most profits will likely flow back to these financial centers, not to the communities in Sonora.
Tax incentives & land use: These projects often receive favorable terms from local or national governments—meaning minimal taxes or fees, while infrastructure and environmental costs fall on the public.

Export vs Domestic Benefit

The gas is destined for Asia, not for domestic Mexican energy needs.
What are the opportunity costs? Would investing in solar, wind, or sustainable tourism yield more lasting benefit for the region?

Impact and Disregard on Local Communities

Displacement & pollution: Will nearby fishing towns or Indigenous groups be displaced? Will air, water, or noise pollution make daily life harder or affect traditional livelihoods like artisanal fishing or eco-tourism?
Job creation vs long-term stability: These projects often promise thousands of jobs, but many are short-term construction roles. Once built, LNG plants are highly automated, with limited local employment.

The economy of the Gulf of California region is heavily reliant on sustainable tourism and fishing. Both are directly threatened by industrial development.

Whale watching, diving, and eco-tourism generate more sustainable income for local communities than any short-term construction jobs promised by an LNG facility. This area is one best destinations in the world for scuba diving, whale watching, swim with sharks, and whale sharks. Once the plant is built, those jobs disappear, but the environmental damage remains.

old Fisherman boat in the Gulf of California resting on land next to the gulf of calfornia — Fisherman boat in the Gulf of California | Photo by Izanbar

Economic Implications of the Saguaro LNG Project

Promised Economic Benefits

Proponents of the Saguaro LNG project highlight several anticipated economic advantages:

Job Creation: The construction and operation phases are expected to generate employment opportunities, potentially boosting local economies.
Infrastructure Development: The project may lead to improvements in local infrastructure, including roads and utilities, facilitating broader economic activities.
Increased Tax Revenues: The operation of the LNG terminal could contribute to state and federal tax coffers, providing funds for public services.

Scrutinizing the Economic Promises

However, a closer examination raises questions about the distribution and sustainability of these benefits:

Foreign Ownership and Profit Repatriation: Despite its name, Mexico Pacific Ltd. is a U.S.-based company, with significant investment from Quantum Capital Group. This structure suggests that a substantial portion of the profits may be repatriated, limiting the financial gains for Mexico. NRDC
Short-Term vs. Long-Term Employment: While construction may offer temporary jobs, the long-term operational phase of LNG terminals is typically less labor-intensive, potentially leading to limited sustained employment for local communities.
Impact on Existing Industries: The project's environmental risks could adversely affect local industries such as fishing and tourism, which are vital to the regional economy and cultural heritage.

Environmental Costs with Economic Consequences

The environmental implications of the project carry potential economic repercussions:

Biodiversity Loss: The Gulf of California is home to numerous endangered species. Environmental degradation could lead to biodiversity loss, affecting ecological balance and the services ecosystems provide.
Climate Change Contributions: LNG production and transport are associated with methane emissions, a potent greenhouse gas. This contribution to climate change could have broader economic impacts, including on agriculture and disaster management.
Potential for Environmental Disasters: Accidents or spills could result in costly clean-up operations and long-term damage to the environment, with associated economic burdens.

a map diagram with the proposed route of the oil shipping from sonora port through the gulf of california into asia — Proposed route through the Gulf of California | Map source: whalesorgas.org

Species at Risk: The Cost of Industrialization in a Natural Treasure

The ocean already has a lot of species on the brink of extinction. The Gulf of California, often referred to as the Aquarium of the World—holds some of the richest marine biodiversity on the planet and no question why it is one of the best places in the world for whale watching. It’s no coincidence that this region has been designated a UNESCO World Heritage Site, a Biosphere Reserve, and a Migratory Bird Refuge under Mexican law. This isn’t just paperwork, it’s global recognition of the ecological importance of the region. And yet, despite this protected status, these waters face an unprecedented threat from the proposed Saguaro LNG project.

Among the most vulnerable are endangered and critically endangered species, including:

Vaquita porpoise (Phocoena sinus): Fewer than a dozen individuals remain in the wild. The Gulf of California is their only home. Increased ship traffic, noise, and industrial disturbance could push this shy and sensitive species to extinction.
Blue whales, fin whales, sperm whales, orca, and humpback whales: These migratory giants use the Gulf as a vital breeding, calving, and feeding ground.
Whale sharks: The largest fish in the world, whale sharks are a draw for ecotourism and already vulnerable to overfishing and habitat degradation.
Leatherback sea turtles: Critically endangered, these ancient reptiles nest along the region’s shores and forage in its waters.

What do all of these species have in common? They depend on a delicate acoustic and ecological balance to survive. Marine mammals, in particular, rely on sound to navigate, communicate, and locate prey. The introduction of high-decibel LNG tankers, seismic surveys, and construction activity threatens to disrupt these natural rhythms. It’s not just a nuisance—it can mean the difference between life and death.

Increased industrial activity also brings a higher risk of oil spills, pollution, and physical collisions, especially for large whales that surface to breathe in shipping lanes. Ship strikes are already a leading cause of death for several whale species worldwide.

But beyond the science and statistics, here’s the bottom line: Protecting these species isn’t just about biodiversity. It’s about our responsibility.

These animals have evolved over millions of years. They are irreplaceable parts of the planet’s ecological heritage. Letting short-term profit destroy habitats that took millennia to shape would be a global tragedy—and a deeply irreversible one.

We have a choice. We can uphold our international commitments to conservation, or we can allow private, foreign interests to degrade one of the last wild sanctuaries on Earth. For the vaquita, for the whales, for the countless lives that depend on a healthy Gulf of California, the decision should be obvious: we must protect, not exploit.

Socioeconomic Disparities and Community Concerns

Local communities have expressed concerns regarding:

Disruption of Traditional Livelihoods: The project may disrupt fishing activities, a cornerstone of the local economy and culture.
Health Risks: Increased industrial activity could lead to pollution, posing health risks to nearby populations and potential healthcare costs.
Inequitable Benefit Distribution: There is apprehension that the economic benefits may not be equitably distributed, exacerbating existing socioeconomic disparities.

The Bigger Picture: Global South Exploitation

Projects like Saguaro aren’t just local issues, they’re symptomatic of a global imbalance. Countries like the U.S. and China continue to consume the majority of the world’s fossil fuels and energy resources, yet much of the extraction occurs in places like Mexico.

The environmental and social costs of these projects are exported to the Global South. Meanwhile, the profits flow to boardrooms in Houston, New York, and Beijing.

No Transparency, No Accountability

The Saguaro project has failed to publicly disclose many crucial details, such as the full shipping route, projected emissions, and risk mitigation strategies. Even the company’s ESG report avoids meaningful discussion of biodiversity and local impact.

When private equity firms like Quantum face little to no accountability for their actions in countries like Mexico, it creates a free pass for environmental destruction.

This Cannot Be Our Future

It’s time we stop allowing companies to treat the Global South as a dumping ground for high-risk, high-pollution industrial projects.

We need to ask: who really benefits from the Saguaro Project? It’s not the vaquita. It’s not the whales. It’s not the local fishers, or the tour operators, or the families who have lived near the Gulf for generations. It’s not even Mexico.

The only beneficiaries are foreign equity firms and fossil fuel conglomerates that are running out of space—and social license—in their own countries.

There is no version of climate justice that includes the destruction of marine biodiversity for private profit. If Quantum Capital truly believes in its sustainability mission, it must divest from Saguaro immediately.

Otherwise, the Aquarium of the World may soon become a graveyard of broken promises and lost species.

What is the Saguaro Project and How It Affects the Aquarium of the World