Sempra Nears 85% Completion of Mexico LNG Facility, Edging Closer to First Gas Export
Sempra Nears 85% Completion of Mexico LNG Facility, Edging Closer to First Gas Export

Sempra Nears 85% Completion of Mexico LNG Facility, Edging Closer to First Gas Export

  • 08-Aug-2024 7:16 PM
  • Journalist: Nina Jiang

Sempra Infrastructure, a subsidiary of Sempra, a leading energy company in North America, is advancing its liquefied natural gas (LNG) project at the Energía Costa Azul (ECA) terminal, located north of Ensenada in Baja California, Mexico. Despite facing labor and productivity challenges in recent months, construction on Phase 1 of the ECA LNG project has reached approximately 85% completion. Sempra anticipates mechanical completion and the production of the first LNG by 2025, with commercial operations under the existing sales and purchase agreements expected to begin in spring 2026. Initially, commercial operations were slated for 2025, with the first LNG expected by late 2024.

ECA LNG is notable for being the only LNG-export project globally to reach a final investment decision (FID) in 2020. Positioned on Mexico’s West Coast, the project is strategically located to connect Asia, the Pacific Basin, and international LNG markets directly to North American natural gas supplies. The facility is planned to enhance the existing ECA regasification terminal by adding liquefaction trains and other necessary infrastructure. This terminal already includes key components such as one marine berth, two LNG storage tanks with a capacity of 160,000 cubic meters each, vaporizers, a nitrogen injection facility, and pipeline interconnections.

Phase 1 of the ECA LNG project features a single-train facility capable of exporting approximately 3.25 million tonnes per annum (mtpa) of LNG. Looking ahead, Phase 2 aims to significantly expand capacity by adding two more trains and an additional LNG storage tank, increasing export capability by around 12 mtpa. The project has already secured definitive 20-year sales and purchase agreements with Mitsui & Co. and TotalEnergies, covering a total of 2.5 mtpa of LNG from Phase 1. A lump-sum, turnkey engineering, procurement, and construction (EPC) contract for Phase 1 was signed in February 2020 with an affiliate of TechnipFMC.

Sempra Infrastructure highlights strong global demand for cleaner and more secure energy, which bolsters its activities across LNG, energy networks, and low-carbon solutions. In line with this demand, the Port Arthur LNG Phase 1 project in Jefferson County, Texas, is under construction, and the proposed Phase 2 expansion is progressing steadily. In June 2024, Sempra signed a non-binding heads of agreement with Aramco for the purchase of 5 mtpa of LNG and a 25% equity investment in Phase 2. The following month, Sempra further advanced Phase 2 by entering into a fixed-price EPC contract with Bechtel Energy.

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