Sempra reaches FID for Energía Costa Azul LNG plant development

US-based Sempra Energy’s subsidiary ECA LNG has reached a final investment decision to develop, construct and operate the Energia Costa Azul (ECA) liquefied natural gas (LNG) export plant in Mexico.

ECA LNG is a joint venture (JV) between Sempra LNG and Infraestructura Energética Nova (IEnova).

The LNG export plant is located in Baja California, Mexico.

According to Sempra, Phase I of the ECA LNG project is currently the world’s only LNG export project to get a final investment decision (FID) in 2020.

Sempra LNG CEO Justin Bird said: “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 US directly to markets in Mexico and countries across the Pacific Basin.

“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.”

Estimated capital cost for ECA LNG Phase I is around $2bn. It is expected to produce the first gas in 2024.

The ECA LNG Phase I, which will be built as a single-train liquefaction facility, will have a nameplate capacity to produce about 3.25Mtpa of LNG.

It already has 20-year ‘sale and purchase agreements’ with units of Mitsui and Total SE for the purchase of about 2.5Mtpa from the first phase of the project.

IEnova CEO Tania Ortiz Mena said: “As one of the largest private investments in the history of Baja California, ECA LNG’s liquefaction-export project is expected to help support the Mexican economy through investment, tax revenue and jobs.

“The project is also expected to positively impact the local community through social investment programmes, as well as help position Mexico as a key player in the global trade of natural gas.”