Page 4 - LatAmOil Week 50 2020

LatAmOil COMMENTARY LatAmOil

(Photo: Sempra Energy)

Total expands LNG footprint

with ECA LNG equity stake

The French major has agreed to buy an equity stake in Sempra Energy’s Energía Costa Azul LNG project

SEMPRA Energy has agreed to sell a 16.6% subsidiaries – Sempra LNG and Infraestructura
equity stake in the Energía Costa Azul (ECA) Energética Nova (IEnova), the company’s Mex-
WHAT: LNG project in Mexico to France’s Total, the two ican unit. The first phase will consist of a single
Sempra has agreed to companies said this week. The announcement liquefaction train with a capacity of 3.25mn
sell a 16.6% equity stake comes as ECA LNG continues to make head- tonnes per year (tpy) of LNG and an initial
in the ECA LNG project in lines, having become the only LNG export pro- offtake capacity of around 2.5mn tpy. The first
Mexico to France’s Total. ject to reach the final investment decision (FID) phase is estimated to cost $2bn to build and will
stage in 2020. source feed gas from the US, transporting it via
WHY: For Total, meanwhile, the deal marks a fur- pipeline to Mexico’s Pacific Coast.
The French company ther expansion of its already considerable LNG Sempra hopes that the plant’s location will
already has an offtake footprint. The French company says on its web- give it a competitive advantage, allowing it to
agreement linked to site that it is the world’s second-largest privately export LNG to Asia without using the congested
the project, which was
sanctioned recently. owned LNG player, and it is likely to keep invest- Panama Canal.
ing in projects across the LNG value chain for Indeed, according to consultancy RBN
WHAT NEXT: the foreseeable future. Energy, shipping a cargo from ECA LNG to Asia
Total is the world’s should take roughly half the time that it would
second-largest privately ECA LNG investment require to ship it from the US Gulf Coast. RBN
owned LNG player, and For ECA LNG, Total’s investment is the latest estimates that this reduced travel time, coupled
will likely keep expanding piece of good news following the FID on the with not needing to pay canal transit fees, could
in the industry. project, which was announced on November 17. result in savings of around $1 per million British
The project is being developed by ECA thermal units ($27.66 per 1,000 cubic metres)
Liquefaction, a joint venture of two Sempra on shipping.

P4 www. NEWSBASE .com Week 50 17•December•2020