Sempra Costa Azul LNG project financing started with $1.5Bln deal

Tuesday, 15 December 2020
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LNG News Editor: 

Sempra Energy’s Mexican subsidiary said a joint venture formed by the Costa Azul LNG export project, including French energy major Total, has signed a loan agreement for partial funding.

The Sempra unit, Infraestructura Energética Nova (IEnova), said the ECA Liquefaction venture had signed a five-year loan deal for an aggregate amount of up to $1.5805 billion in relation to the ECA LNG export project.

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“The financing, which will not consolidate in IEnova’s balance sheet, has three tranches associated with the commitments of each joint venture partner,” explained IEnova.

Also on December 9, Sempra and IENova said their Costa Azul project had signed an equity investment agreement with Total, giving the French company a 16.6 percent equity stake in the first phase of Costa Azul, with Sempra and IEnova each retaining 41.7 percent ownership. Total also has a 20-year sale and purchase agreement for around 1.7 million tonnes per annum of Costa Azul volumes.

IEnova said that financial institutions that took part in the Costa Azul project financing for its tranche were the Bank of Nova Scotia, Sumitomo Mitsui Banking Corp. of Japan, Spanish bank BBVA Securities, and Banco Nacional de México with its Banamex financial group.

Technip Energies, the LNG and energy project contract division of TechnipFMC, the Franco-US company, received a notice to proceed for its Costa Azul LNG engineering, procurement and construction contract following the positive final investment decision taken by Sempra and its partners in November 2020.

Technip said it had been involved in Costa Azul, an existing LNG import terminal, since 2017, including the delivery of the front-end engineering and design for the transformation into an export plant.

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