US LNG exporter Sempra confirms US feed-gas permits for Costa Azul and Vista Pacifico projects in Mexico

Friday, 23 December 2022
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Sempra Infrastructure, the US owner of the Cameron LNG plant in Louisiana, and Port Arthur venture in Texas, said it received permits from the US Department of Energy to export US feed-gas from two LNG export plants being developed in Mexico.

Sempra said the permits applied to the Energía Costa Azul project and the Vista Pacifico venture, which war both located on the Mexican Pacific Coast.

“Advancing new infrastructure investments is critical to supporting the energy needs of America's allies,” said Justin Bird, Chief Executive of Sempra Infrastructure.

“These export projects are expected to support efforts across the Indo-Pacific region to diversify energy supplies while transitioning away from coal in power production,’ explained Bird.

“They are also expected to help strengthen US trading relationships, as well as create new jobs and boost the US and Mexico economies,” stated the CEO.

Under the permits granted by the DOE, the Vista Pacifico LNG is authorized to re-export up to 200 billion cubic feet per annum of LNG from US-sourced natural gas from the project under development at Topolobampo in the Mexican state of Sinaloa to any country with which the US does not have an Free Trade Agreement requiring national treatment for trade in natural gas.

Sempra described Vista Pacifico as a mid-scale facility with expected capacity of 3.5 MTPA.

The Vista Pacifico project is contingent upon completing the required commercial agreements, securing all necessary permits, obtaining financing and reaching a final investment decision.

The Sempra LNG unit of California-based utility Sempra Energy is working on the Vista Pacifico project in collaboration with Mexico's Federal Electricity Commission.

The Costa Azul Phase 1 currently under construction received non-FTA export authorization in 2019 and is scheduled to start commercial operations in 2025.

Second phase

The DoE also increased the authorized export volumes of the Costa Azul plant Phase 2 to re-export up to 636 billion cubic feet per annum of US-sourced LNG from project in Ensenada in the state of Baja California to non-FTA nations.

“Both permits are applicable for the period beginning on the date of first commercial re-export through December 2050,” added Sempra.

The proposed Costa Azul Phase 2 is expected to be comprised of two Trains and one LNG storage tank and produce approximately 12 MTPA.

CEO Bird thanked a string of US politicians for the DoE action, including Texas Republic senators Ted Cruz and John Cornyn, as well as the Democrat Senator for West Virginia Joe Manchin and the leadership of the Biden Administration.

Last modified on Friday, 06 January 2023 11:43
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