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Sempra Reaches FID for LNG Export Facility in Mexico

Sempra Energy’s Energía Costa Azul LNG (ECA LNG) subsidiary reached a final investment decision (FID) to build its $2-billion Phase 1 natural gas liquefaction export project in Baja California, Mexico.

ECA LNG, a joint venture between Sempra LNG and its Mexico subsidiary IEnova, is the only LNG export project to reach FID in 2020, and is slated to be the first on the Pacific Coast of North America. 

The facility will connect natural gas supply from Texas and the western US to Mexico and other countries across the Pacific Basin. It will be built and operated by Sempra LNG and IEnova as a single-train LNG liquefaction plant, adding a nameplate capacity of 3.25 mtpa to the existing regasification terminal, with initial offtake capacity of about 2.5 mtpa.

First production from Phase 1 is expected in late 2024. 

The company secured a 20-year supply agreement with Mitsui and an affiliate of Total for the purchase of 2.5 mtpa and is working with Total for a potential equity investment in the facility.

TechnipFMC will also proceed with an engineering, procurement, and construction contract for the plant worth over $1 billion, which was awarded in February. TechnipFMC has been involved with the venture since 2017 and previously delivered its front-end engineering design.

In addition to Phase 1, Sempra LNG said it was developing a potential Phase 2 for the project.

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