Sempra Units Sign HOAs for Mexican LNG Supplies

Sempra Energy has announced that its subsidiaries Infraestructura Energetica Nova S.A.B. de C.V. (IEnova) and Sempra LNG & Midstream have signed three Heads of Agreements (HOAs) with affiliates of Total S.A., Mitsui & Co., Ltd. and Tokyo Gas Co., Ltd. for the full export capacity of Phase 1 of the proposed Energia Costa Azul (ECA) liquefaction and LNG export project located in Baja California, Mexico. ECA LNG Phase 1 is a single-train liquefaction facility to be located adjacent to the existing LNG receipt terminal and is expected to produce approximately 2.4 million tonnes per annum (Mtpa) of LNG for export to global markets. According to the press release, the three HOAs for ECA LNG Phase 1 contemplate the parties negotiating and finalizing definitive 20-year LNG sales-and-purchase agreements. The three companies each will potentially purchase approximately 0.8 Mtpa of LNG from ECA LNG Phase 1. A final investment decision for ECA LNG is targeted for late 2019 with potential first LNG deliveries in 2023.

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