Sempra Energy’s units Infraestructura Energetica Nova (IEnova) and Sempra LNG & Midstream have signed deals for the full export capacity of Phase 1 of the Energia Costa Azul LNG located in Baja California, Mexico.
The three heads of agreements were signed with units of Total, Mitsui & Co. and Tokyo Gas, the company said in a statement.
ECA LNG Phase 1 is a single-train liquefaction facility to be located adjacent to the existing LNG receiving terminal and expected to produce approximately 2.4 million tonnes per annum (Mtpa) of LNG for export to global markets.
“These three HOAs mark a significant milestone for the development of the ECA liquefaction export-project,” said Joseph Householder, president and chief operating officer of Sempra Energy.
Under the three agreements further open to negotiation and finalization of definitive 20-year LNG sales-and-purchase agreements, the three companies each will potentially purchase approximately 0.8 Mtpa of LNG.
A final investment decision for ECA LNG is targeted in late 2019 with potential first LNG deliveries in 2023, Sempra said.
In June, TechnipFMC and Kiewit were selected as the engineering, procurement, construction and commissioning (EPC) contractor for the ECA LNG project, subject to reaching a definitive agreement on the EPC contract.
The ECA LNG receipt terminal was the first LNG receipt terminal constructed on North America’s West Coast. Located about 15 miles north of Ensenada, Baja California, it began commercial operations in 2008 and is capable of processing up to 1 billion cubic feet of natural gas per day.