Sempra to Export LNG to Non-USMCA Countries
Home > Energy > Article

Sempra to Export LNG to Non-USMCA Countries

Photo by:   Geralt
Share it!
Perla Velasco By Perla Velasco | Journalist & Industry Analyst - Mon, 12/26/2022 - 10:49

The US Department of Energy (DOE) authorized Sempra Infrastructure’s Costa Azul and Vista Pacífico to re-export US sourced LNG from Mexico to non-USMCA countries. These authorizations represent a huge action toward world energy security. According to Justin Bird, Executive Director, Sempra Infrastructure,  this is expected to strengthen US trading relationships, create jobs and boost the US and Mexico’s economies. 

DOE granted a license to Vista Pacífico to export up to 200Bcf/y of LNG. DOE also authorized Costa Azul to export up to 636Bcf/y, an increase to the volume of exports previously granted. The permits allow them to re-export LNG until 2050. “Advancing new infrastructure investments is critical to supporting the energy needs of America’s allies and we are grateful for the leadership of the Biden Administration, the US Energy Secretary Jennifer Granholm and various Congressional stakeholders—including Senators Joe Manchin, Ted Cruz and John Cornyn. These export projects are expected to support efforts across the Indo-Pacific region to diversify energy supplies while transitioning away from coal in power production,” said Bird in a press release by the company. 

Both projects got export authorization in 2021, which was now further improved. According to Oil and Gas Journal, Sempra expects to start exports in 2027 for Vista Pacífico, including one liquefaction train with a gas pretreatment unit, a 6.36MMcf LNG storage tank, a marine jetty, ground flare equipment and connective piping and infrastructure. Vista Pacífico is developing under Sempra and CFE’s collaboration. Meanwhile, Costa Azul is currently under development at Sempra’s terminal in Baja California, and it will use two 6.2-million t/y CO2 liquefaction trains. DOE increased Costa Azul’s export limit by 182Bcf/y.

Mexico’s Natural Gas Situation

CENACE has declared an Emergency Operational State in the National Interconnected System due to the arrival of cold front No. 19. CFE assured it has a plan to control the situation and guarantee energy generation for the entire country. While a wind storm approaches Mexico and the US, Texas could be the most affected region. According to CENACE, this could negatively impact electricity generation in Mexico as the pipelines through which the country imports natural gas lay at the frontier of the two countries. 

Meanwhile, the energy dispute between Mexico and the US remains still. Earlier this month, the Mexican Minister of Economy, Raquel Buenrostro, presented a plan to resolve the energy policy disputes under USMCA with the US and Canada. The ministry underlined the importance of speeding up the consultation period to provide assurance to investors who want to come to Mexico.

Photo by:   Geralt

You May Like

Most popular

Newsletter