Total acquires stake in Sempra’s Mexican LNG project

French oil and gas company Total has acquired an equity stake in Sempra LNG’s Energia Costa Azul (ECA) liquefied natural gas (LNG) export project in Mexico.

The company signed the equity investment agreement with ECA Liquefaction, the joint venture of Sempra and its local unit Infraestructura Energética Nova (IEnova), to acquire a 16.6% stake in ECA LNG Phase 1.

Under the agreement, Sempra LNG and IEnova will continue to retain a 41.7% interest each in the project.

The move comes a month after ECA LNG reached a final investment decision (FID) for the development of the $2bn LNG facility.

ECA LNG Phase 1 will have direct access to natural gas supplies in Texas and the Western US. The single-train liquefaction facility will have a capacity of 3.25 Mtpa of LNG.

Sempra LNG CEO Justin Bird said: “We are excited to extend our strategic alliance with Total, a global LNG leader, as we commence construction on our landmark ECA LNG Phase 1 project and help expand Total’s North America LNG infrastructure portfolio.

“This agreement is the next step in advancing our long-term strategy to provide the world with access to diverse US natural gas basins that can offer reliable and more secure forms of energy from both the Pacific and Gulf Coasts.”

The Phase 1 of the project is being developed at IEnova’s existing Energía Costa Azul LNG regasification facility.

The latest deal does not provide Total with an equity interest in the regasification plant.

IEnova CEO Tania Ortiz said: “This important equity investment by Total is evidence of international confidence in our energy infrastructure projects as well as the future of investment in Mexico.

“We will remain focused on our mission to foster the country’s economic development and well-being of the communities where we operate.”

Notably, Total also signed a 20-year sale and purchase agreement earlier this year for nearly 1.7 million tonnes per annum (Mtpa) of LNG from the export facility.