Sempra Energy announced that it has signed three agreements with Total, Mitsui and Tokyo Gas for the full export capacity of Phase 1 of the Energia Costa Azul liquefied natural gas (ECA LNG) project located in Baja California, Mexico. This would be the first LNG export project on Mexico’s Pacific coast.
ECA LNG Phase 1 is a single-train liquefaction facility, near to the current LNG receipt terminal and is expected to produce about 2.4 million tonnes per annum (Mtpa) of LNG for export to global markets.
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The three agreements for ECA LNG Phase 1 regard the parties negotiating and finalizing definitive 20-year LNG sales-and-purchase agreements. The three companies will potentially purchase approximately 0.8 Mtpa of LNG from ECA LNG Phase 1. A final investment decision for ECA LNG will take place in late 2019 with potential first LNG deliveries in 2023.
TechnipFMC and Kiewit will be the engineering, procurement, construction and commissioning (EPC) contractors for the ECA LNG project, which is subject to reaching a definitive agreement on the EPC contract.
The ECA LNG receipt terminal was the first LNG receipt terminal built on North America’s West Coast. It began commercial operations in 2008 and is able of processing up to 1 billion cubic feet of natural gas per day.
What is more, Sempra Energy will also develop Port Arthur LNG export project in Texas, as well as Cameron LNG Phase 1 and 2 export projects in Louisiana. Cameron LNG Phase 1 is currently under construction and Total.
The development of the ECA LNG Phase 1 and 2, Port Arthur LNG and Cameron LNG Phase 2 export projects are subject to several risks and uncertainties, such as obtaining binding customer commitments, necessary regulatory approvals and permits, securing financing, completing the required commercial agreements and reaching a final investment decision.
