Sempra Inks Costa Azul Offtake Accords
Sempra Energy announced November 7 it has signed three heads of agreement (HoAs) with Total, Mitsui, and Tokyo Gas for future volumes from its planned Energia Costa Azul liquefaction project (ECA) on Mexico's Pacific coast.
The three HOAs for ECA LNG Phase 1 contemplate the parties negotiating and finalising definitive 20-year LNG sales-and-purchase agreements (SPAs). Each of the three will potentially purchase 0.8mn metric tons (mt)/yr of LNG from ECA LNG Phase 1. A final investment decision (FID) for ECA LNG is targeted in late 2019 with potential first LNG deliveries in 2023.
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
ECA LNG Phase 1 is a single-train liquefaction facility to be located adjacent to the existing LNG receipt terminal and expected to produce some 2.4mn mt/yr of LNG for export to global markets.
"These three HoAs mark a significant milestone for the development of the ECA liquefaction export-project, supporting Sempra Energy's strategic vision of becoming North America's premier energy infrastructure company," said Sempra CEO Joseph Householder.
TechnipFMC and Kiewit were selected in June as engineering, procurement, construction and commissioning (EPC) contractor for the ECA LNG project, subject to a definitive agreement on the EPC contract.
Built about 15 miles north of Ensenada in the Mexican state of Baja California, ECA began operations in 2008 as the first LNG receiving terminal constructed on the west coast of North America. Now though it is now to be converted to a liquefaction and export project.
In addition to the ECA LNG phase 1 and 2 export projects, Sempra Energy is developing Port Arthur LNG export project in Texas and Cameron LNG Phase 1 and 2 export projects in Louisiana. Cameron LNG phase 1 currently is under construction and Total and Mitsui are two of Sempra Energy's joint-venture partners in the project, but all the other projects remain subject to a final investment decision.
The ultimate participation of Total, Mitsui and Tokyo Gas in the ECA LNG project remains subject to finalisation of definitive agreements, among other factors, said Sempra. However early this week Total signed a framework agreement with Sempra agreeing to co-operate in its development of North American LNG export projects.