Sempra’s Costa Azul LNG Project Signs Two 20-Year Deals in Encouraging Sign

Updated: May 23, 2020

Sempra’s planned expansion of its Costa Azul facility in Baja California, Mexico, is showing encouraging momentum for facilities that can serve Asian markets, even as many LNG projects are being delayed by the fallout from the COVID-19 pandemic and the ill-advised oil price war.

During its earnings call today, the San Diego-based company announced agreements setting up 20 years of exports from its Pacific Coast LNG facility, and confirmed plans to make a final investment decision (FID) soon on the first phase of an expansion that will outfit the site with export capabilities, Reuters reported:

“At Costa Azul, Sempra said Costa Azul LNG signed 20-year agreements with units of Total SA and Mitsui & Co for about 2.5 million tonnes per annum (MTPA) or 0.33 billion cubic feet per day (bcfd) of natural gas.

The company said the second quarter FID it is targeting, for the first phase of Costa Azul, is subject to receiving an export permit.

The liquefaction train will be built at the existing Costa Azul LNG import plant, which entered service in 2008 and has the capacity to regasify up to 1 bcfd.”

Read more - Reuters

68 views0 comments