Page 14 - NorthAmOil Week 48 2020

NorthAmOil PROJECTS & COMPANIES NorthAmOil

Sempra to combine US,

Mexican LNG subsidiaries

US-MEXICO CALIFORNIA-BASED Sempra Energy has which involves a liquefaction terminal in Mexico
announced this week that it is simplifying its that will use US gas as feedstock. The project is
energy infrastructure business – a plan that being developed by a joint venture between Sem-
entails combining its two LNG subsidiaries into pra LNG and IEnova. In the US, Sempra LNG
a single unit. operates the Cameron LNG terminal in Louisi-
Under the plan, US subsidiary Sempra LNG ana and is proposing to build Port Arthur LNG
and Mexico’s Infraestructura Energética Nova facility in Texas.
(IEnova) will be unified into Sempra Infrastruc- Subject to receiving all the necessary author-
ture Partners after the parent company acquires isations, Sempra anticipates completing its
Sempra made a final the 29.8% of the IEnova shares it does not own. acquisition of IEnova shares by the end of the
investment decision in The deal values IEnova at $6.13bn. first quarter of 2021. It also said it intends to
mid-November on the The creation of the new unit is intended to sell a non-controlling interest in Sempra Infra-
Energía Costa Azul LNG simplify and add scale to Sempra’s North Amer- structure Partners in order to fund the entity’s
export project. ican infrastructure business, the company said growth, which is expected to be geared towards
in a December 2 statement. Sempra Infrastruc- the energy transition.
ture Partners will focus on the development of “By focusing on the critical need for new
North American LNG export infrastructure, as energy infrastructure right here in North
well as natural gas infrastructure and renewable America, both Sempra LNG and IEnova have
energy generation. Its LNG portfolio will consist created a significant pipeline of development
of roughly 45mn tonnes per year (tpy) of LNG projects that are expected to provide differen-
export capacity in development, construction tiated growth for decades to come,” Sempra’s
or operation on the North American Pacific and chairman and CEO, Jeffrey Martin, said. “More
Gulf Coasts, the parent company added. importantly, this will provide an improved plat-
This comes after Sempra made a final invest- form for innovation and potential new invest-
ment decision (FID) in mid-November on the ments in renewables, hydrogen, energy storage
Energía Costa Azul (ECA) LNG export project, and carbon sequestration.”™

ENERGY TRANSITION

Pioneer sets emissions reduction targets

PERMIAN BASIN PIONEER Natural Resources, one of the US’ Kenneth Thompson. “We are increasing the
largest independent shale producers, has weighting of these metrics in executive incentive
unveiled new targets for reducing its green- compensation from 10% to 20% beginning in
house gas (GHG) emissions. On December 2, 2021 and [are continuing] to enhance board gov-
the company published its 2020 sustainability ernance on ESG and HSE initiatives to ensure
report, which set out these targets, among other Pioneer’s leadership position continues into the
environmental, social and governance (ESG) future,” he added.
initiatives. Pioneer has already had various sustainabil-
Dallas-based Pioneer is targeting a 25% ity initiatives underway in recent years, includ-
reduction in GHG intensity and a 40% cut in ing minimising its use of fresh water for oilfield
methane intensity by 2030, with this target inclu- operations such as hydraulic fracturing. It has
sive of the operations the company will take on been doing this by ramping up re-use of pro-
when it closes its acquisition of Parsley Energy duced water and buying treated effluent water
in early 2021. from the cities of Midland and Odessa in Texas.
In addition, Pioneer has set a goal to limit its After a new Midland water treatment facility
flaring intensity to less than 1% of the associated comes online by the end of this year, Pioneer
natural gas it produces, with a plan to incorpo- expects to reduce its freshwater use to below
rate Parsley’s assets into this target by 2022. In 20% in 2021, with further reductions targeted
the longer term, Pioneer is aiming to end routine for subsequent years.
flaring by 2030, with “the aspiration” to achieve The emissions reduction targets, meanwhile,
this by 2025. are a new initiative for the company, which will
“The board’s engagement in ESG and cli- become the largest producer to focus exclusively
mate-related concerns is a top priority,” com- on the Permian Basin once the Parsley acquisi-
mented Pioneer’s chairman of the board, tion is complete.™

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