Sempra Infrastructure receives export licenses for two LNG projects

Sempra Infrastructure, a subsidiary of Sempra  announced that Energía Costa Azul, S. de R.L. de C.V. (ECA LNG) and Vista Pacifico, S.A.P.I. de C.V. (Vista Pacifico LNG) received authorization from the U.S. Department of Energy (DOE) to re-export U.S.-sourced LNG from Mexico to non-Free Trade Agreement (FTA) nations. The DOE's significant action is an important milestone for these two development projects, which now are each one step closer to supporting the world's energy security and environmental goals.

"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, U.S. Energy Secretary Jennifer Granholm, and various Congressional stakeholders—including Sens. 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 Justin Bird, CEO of Sempra Infrastructure. "They are also expected to help strengthen U.S. trading relationships, as well as create new jobs and boost the U.S. and Mexico economies."

Under the permits granted by DOE, Vista Pacifico LNG is authorized to re-export up to 200 billion cubic feet per year (Bcf/yr) of LNG from U.S.-sourced natural gas from the project under development in Topolobampo, Sinaloa, Mexico to any country with which the United States does not have an FTA requiring national treatment for trade in natural gas. Vista Pacifico LNG is projected to be a mid-scale facility with approximately 3.5 MMtpy of export capacity. Sempra Infrastructure is advancing the development of Vista Pacifico LNG in collaboration with Mexico's Federal Electricity Commission (CFE), as previously announced.

The DOE also increased the authorized export volumes of ECA LNG Phase 2, permitting it to re-export up to 636 Bcf/yr of LNG from U.S.-sourced natural gas from the proposed project in Ensenada, Baja California, Mexico to non-FTA nations. Both permits are applicable for the period beginning on the date of first commercial re-export through December 2050.

The proposed ECA LNG Phase 2 is expected to be comprised of two trains and one LNG storage tank and produce approximately 12 MMtpy of export capacity. ECA LNG Phase 1 received non-FTA export authorization in 2019 and is currently under construction with commercial operations expected in 2025.

Development of ECA LNG Phase 2 and Vista Pacifico LNG is contingent upon completing the required commercial agreements, securing all necessary permits, obtaining financing, and reaching a final investment decision, among other factors.

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