Sempra Energy subsidiary ECA Liquefaction (ECA LNG), a joint venture between Sempra LNG and Infraestructura Energética Nova SAB de CV (IEnova), has reached a final investment decision (FID) for development, construction, and operation of the 3.25-million tonne/year (tpy) Energia Costa Azul LNG Phase 1 natural gas liquefaction-export project in Baja California, Mexico. First production is expected late-2024, with Sempra describing it as the first LNG export plant on the Pacific Coast of North America.
Sempra LNG and IEnova will build and operate Phase 1 as a single-train liquefaction plant with initial offtake capacity of 2.5 million tpy. ECA LNG has secured definitive 20-year sale and purchase agreements with Mitsui & Co. Ltd. and an affiliate of Total SE for the purchase of this production.
ECA LNG and Total SE are negotiating a potential equity investment in the project by Total SE. In February 2020, ECA LNG executed a lumpsum, turnkey engineering, procurement, and construction contract with an affiliate of TechnipFMC PLC for Phase 1.
Phase 1 will cost roughly $2 billion.
Sempra LNG is developing additional LNG export plants on the Gulf Coast and Pacific Coast of North America, including a potential 12-million tpy Phase 2 of the ECA LNG project. Phase 2 will include two additional trains and one LNG storage tank. ECA LNG has US Department of Energy (DOE) authorization to export LNG produced from US-sourced natural. Phase 2 of the project will require additional DOE approval to export at its full expected capacity.
Sempra has proposed a new two-train 13.5-million tpy export plant in Port Arthur, Tex. The company also owns a 50.2% interest in the three-train 12-million tpy Cameron LNG plant in Hackberry, La., and has begun permitting for Phase 2, which will include two additional liquefaction trains and one additional storage tank. Sempra commissioned the third Phase 1 train earlier this year (OGJ Online, May 11, 2020).