Sempra Energy in Mexico LNG agreements

MEXICO CITY, November 8, 2018 – IEnova and Sempra LNG & Midstream have signed heads of agreement for LNG from Mexico’s Energia Costa Azul LNG export and liquefaction terminal, parent company Sempra Energy said in a Wednesday press statement.

Three preliminary agreements signed with Total, Mitsui and Tokyo Gas affiliates cover the entirety of the facility’s phase one capacity of 2.4 million tonnes per year. The companies will continue to negotiate gas sales contracts, each to potentially provide for 800,000 tonnes of LNG per year for 20 years.

“We look forward to working with three world-class and well-respected LNG companies to develop a project that should provide low-cost, flexible operations and reliable LNG to the Pacific Basin market and to supply the Baja California peninsula market in Mexico,” Carlos Ruiz Sacristán, IEnova executive chairman and CEO of the Sempra North American Infrastructure group said.

The final investment decision for the terminal project is slated for late 2019, with LNG deliveries expected to begin in 2023, the statement added.

Read our latest insights on: