Sempra’s Mexico project Energia Costa Azul produces first LNG

US LNG developer Sempra Infrastructure has achieved first LNG at its Energia Costa Azul (ECA) project in Ensenada, Mexico, the US firm announced on June 4.

The company, which is a subsidiary of San Diego-headquartered Sempra, had revealed in May that the Phase 1 of the project would produce first LNG in June.

The project, which will produce 3.25 mn tonnes per year (tpy), began producing LNG in its commissioning process as part of its journey towards beginning commercial operations. Under the terms of the licence granted to it by the US Department of Energy (DOE), Energia Costa Azul must commence exporting cargoes by September 21.

The export terminal located on Mexico’s Pacific Coast in the state of Baja California began receiving feed gas on April 20.

“This achievement reflects the dedication of the entire ECA LNG Phase 1 team and their unwavering commitment to the highest standards of successful project development,” Sempra Infrastructure CEO Justin Bird said in a statement.

“The production of first LNG marks a significant milestone on the path to full operations expected in the coming months, enabling the delivery of reliable and secure energy from North America's Pacific Coast to global markets,” Bird added.

Sempra Infrastructure is seeking to capitalize on Energia Costa Azul’s ideal location, which will enable a direct, safe shipping path to energy-hungry markets in East Asia. The project also benefits from re-exporting US natural gas that is sourced cheaply from the Permian basin of New Mexico and western Texas.

The project is a joint venture with French supermajor TotalEnergies, which holds a 17% stake and possesses a long-term offtake agreement for 1.7 mn tpy. Japan’s Mitsui also can a deal in place for 800,000 tpy.

Sempra is still considering whether to take a final investment decision on Phase 2 of the project, which would add 12 mn tpy of production capacity to the facility.