Total, Sempra LNG and IEnova have signed binding agreements finalising Total’s equity investment in the Energía Costa Azul liquefied natural gas export project (ECA LNG), which is located in Baja California, Mexico.
Total now holds a 16.6 per cent equity share of the project, for which the final investment decision was taken in November 2020 for the development, construction and operation of a single-train liquefaction facility with a nameplate capacity of 3.25 million tonnes per annum (Mtpa) of LNG and an initial offtake capacity of approximately 2.5 Mtpa of LNG.
Exports of LNG from ECA LNG Phase 1 are expected to improve the trade balances of the U.S. and Mexico.
Construction on Phase 1 of the project is forecast to generate more than 10,000 direct and indirect jobs as a result of increased economic activity and social investments in both countries. Approximately 75 full-time jobs are expected to be added to the operations of ECA LNG.
ECA LNG has secured definitive 20-year sale and purchase agreements with Mitsui & Co., Ltd. and an affiliate of Total for the purchase of approximately 2.5 Mtpa of LNG from Phase 1 of the project.
President of Gas, Renewables and Power at Total, Philippe Sauquet, saidTotal is very pleased to further strengthen its partnership with Sempra Energy through the company’s participation in the ECA LNG project, that benefits from brownfield synergies with existing facilities and from the proximity to Asian markets.
“This investment is in line with our strategy to grow our LNG integrated portfolio across the entire gas value chain, which is key to meeting a growing global demand for energy while decreasing the carbon intensity of the products sold to our customers,” Mr Sauquet said.
ECA LNG is owned by Sempra LNG (41.7 per cent), IEnova, Sempra Energy’s subsidiary in Mexico (41.7 per cent), and Total (16.6 per cent).