Sempra, CFE pen deals for two Mexican LNG terminals

A unit of US energy firm Sempra has signed deals with Mexico’s Federal Electricity Commission to advance the development of the planned Vista Pacifico LNG export project in Topolobampo and to work on a new LNG terminal in Salina Cruz, Oaxaca.

Besides the two LNG terminals, Sempra Infrastructure and CFE signed a deal on rerouting of the Guaymas-El Oro pipeline in Sonora, according to a statement by Sempra.

These new agreements establish the framework for a joint venture between the companies to ultimately enable the restoration of service provided by the Guaymas-El Oro pipeline, it said.

Vista Pacifico LNG

Earlier this year, the two firms signed a non-binding memorandum of understanding for the development of Vista Pacifico LNG.

The mid-scale facility would have a capacity of 4 mtpa and would connect to two existing pipelines, Sempra said.

Sempra is already building the 3.25 mtpa Costa Azul LNG export project in Mexico after it took a final investment decision on the development in November 2020.

The US firm said in the statement that the newest deals with CFE “outline the path forward for the Vista Pacífico LNG terminal, including the definition of the project’s configuration to advance engineering and permitting efforts.”

Salina Cruz LNG

Besides the Vista Pacifico LNG project, two firms are expanding the memorandum of understanding signed earlier this year to jointly explore the potential development of the LNG terminal in Salina Cruz.

Salina Cruz has been previously mentioned as a potential location for an LNG terminal.

However, Sempra did not reveal much information regarding this project.

“This new opportunity will support the government of Mexico’s Interoceanic Corridor in the Isthmus of Tehuantepec project, which is intended to promote economic growth and development of Mexico’s South-Southeast region,” it said.

Sempra said these three developments would allow CFE to potentially optimize the use of existing natural gas pipeline systems, provide additional sources of LNG supply for isolated markets in Mexico, and continue to expand LNG supplies to the global market.

The agreements for the development of the Vista Pacifico LNG and the proposed LNG project in Salina Cruz are preliminary and non-binding, it added.

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