French energy giant Total has purchased an equity stake in Sempra Energy’s Costa Azul LNG export plant in Mexico.
US-based Sempra and its unit local unit Infraestructura Energetica Nova (IEnova) signed the deal with Total for the $2 billion Energia Costa Azul (ECA) LNG facility on Wednesday.
Under the terms of the agreement, Total will take a 16.6% equity stake in the first phase of ECA LNG. Sempra LNG and IEnova will each retain 41.7% ownership.
Earlier this year, Total signed a 20-year sale and purchase agreement for about 1.7 million tonnes per annum of LNG from the export facility.
Furthermore, Sempra said last month it will build the Costa Azul LNG export plant at the existing regasification facility.
This marked the first final investment decision for an LNG export project this year as the Covid-19 dampened demand pushing down prices to record lows.
The decision to build the plant follows a long-awaited approval by Mexico’s government for a 20-year export permit.
The first phase includes one train with a capacity of 3.25 mtpa and an initial offtake of about 2 mtpa.
Besides Total, ECA has secured definitive 20-year deal with Japan’s Mitsui & Co.
Additionally, a unit of TechnipFMC secured a lump-sum, turn-key EPC contract for the first phase of the LNG export facility.
Sempra expects first LNG from the plant in late 2024.