Sempra Energy FID for Costa Azul LNG Export Project

Sempra Energy announced today that its subsidiary ECA Liquefaction (ECA LNG), a joint venture between Sempra LNG and Infraestructura Energética Nova, S.A.B. de C.V. (IEnova), has reached a final investment decision for the ECA LNG Phase 1 natural gas liquefaction-export project in Baja California, Mexico.

ECA LNG Phase 1 would add liquefaction facilities to the existing Energía Costa Azul (ECA) regasification terminal in Baja California, Mexico. Plans call for a single-train liquefaction facility with a nameplate capacity of 3.25 million tonnes per annum (Mtpa) of LNG and an initial offtake capacity of approximately 2.5 Mtpa of LNG. ECA LNG Phase 1 will be built and operated by Sempra LNG and IEnova, Sempra Energy's subsidiary in Mexico. The estimated capital expenditures for ECA LNG Phase 1 are approximately $2 billion. Sempra expects to fund the project with a combination of equity contributions and debt. First LNG production from ECA LNG Phase 1 is expected in late 2024. 

ECA LNG has secured definitive 20-year sale and purchase agreements with Mitsui & Co., Ltd. and an affiliate of Total SE for the purchase of approximately 2.5 Mtpa of LNG from Phase 1 of the project.  ECA LNG and Total SE continue to work toward a potential equity investment in the project by Total SE.  In February, ECA LNG executed a lump-sum, turn-key engineering, procurement, and construction contract with an affiliate of TechnipFMC plc for Phase 1 of the LNG export facility.

"We are excited to continue to help unlock North America's energy potential with ECA LNG Phase 1. This project would be the first LNG export facility on the Pacific Coast of North America that can help connect abundant natural gas supplies from Texas and the Western U.S. directly to markets in Mexico and countries across the Pacific Basin," said Justin Bird, CEO of Sempra LNG. "This important milestone is a testament to the resiliency of our team and marks the latest step toward our goal to be North America's premier LNG infrastructure company."

Sempra noted the construction is expected to create more than 10,000 direct and indirect jobs as a result of increased economic activity and social investments in both countries. Approximately 75 full-time jobs are expected to be added to the operations of ECA LNG. ECA LNG Phase 1 is the only LNG export project in the world to reach a Final Investment Decision so far in 2020.