Costa Azul LNG Terminal

From Global Energy Monitor

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Costa Azul LNG Terminal is an LNG import terminal in Baja California, Mexico. It was originally built as an import terminal but is being converted into an export terminal.

Location

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Project Details (Import Terminal)

  • Owner: Energía Costa Azul[1]
  • Parent: Sempra Energy[2][3][4]
  • Location: Ensenada, Ensenada, Baja California, Mexico
  • Coordinates: 31.988557, -116.846466 (exact)
  • Capacity: 7.6 mtpa[3][4], 1.08 bcfd
  • Additional Proposed Capacity:
  • Status: Operating
  • Type: Import
  • Start Year: 2008[3][4][5]

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Project Details (Export Terminal)

Project Details, Export Terminal Phase 1

  • Owner: Total 16.6%, Sempra 41.7%, Infraestructura Energetica Nova (IEnova), a subsidiary of Sempra 41.7%[6][7]
  • Location: Ensenada, Ensenada, Baja, Mexico
  • Coordinates: 31.988557, -116.846466 (exact)
  • Trains: 1[7]
  • Capacity: 3.25 mtpa[8]
  • Status: Construction[9][10]
  • Type: Export[7]
  • Start Year: 2024[7]

Project Details, Export Terminal Phase 2

  • Owner: Total 16.6%, Sempra 41.7%, Infraestructura Energetica Nova (IEnova), a subsidiary of Sempra 41.7%[6][7]
  • Location: Ensenada, Ensenada, Baja, Mexico
  • Coordinates: 31.988557, -116.846466 (exact)
  • Trains: 2[7]
  • Capacity: 12 mtpa[7][8]
  • Status: Proposed[7]
  • Start Year:

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background (Import Terminal)

Costa Azul LNG Terminal comprises a sea port and natural gas processing center, located 15 miles north of Ensenada, Baja California, Mexico.[11] Opened in May 2008[12], it was the first liquefied natural gas (LNG) terminal on North America's Pacific coast, with the capacity to process and regasify up to one billion cubic feet of natural gas per day.[13][14] LNG carrier ships capable of holding up to 220,000m3 of LNG can dock in the deep water port off the coast to unload LNG. Natural gas from the terminal is used to produce electricity and is fed by pipelines to factories. The terminal also supplies a 78-kilometer spur pipeline that runs north to connect with the Rosarito Gas Pipeline near the Mexico-United States border. Sempra Energy is a partner in the port with PEMEX. The 210,000m3 Al Safliya, transporting LNG from Qatar, was the first ship to dock and unload at the Costa Azul terminal.[13][14] Mexico's other Pacific coast LNG terminal is the Manzanillo LNG Terminal in Manzanillo, Colima state.

In 2015 Sempra Energy began considering plans to convert the import terminal into a natural gas liquefaction and export facility.[13]

Background (Export Terminal)

The proposed export terminal will be a joint venture between Sempra Energy and Infraestructura Energetica Nova SAB de CV (IENOVA).[15] Plans call for the terminal to be built in two phases[16], with natural gas to be sourced from Texas, Wyoming, Utah and/or New Mexico.[17] The proposed second phase would reportedly require construction of a new pipeline from the Permian Basin or elsewhere in the western US.[16]

In April 2020 sponsors were waiting to make a final investment decision (FID) pending approval of the project's export license.[18]

In April 2020, Sempra announced that it would postpone an investment decision on its Costa Azul LNG plan.[19] Sempra has said the proposed project is a US$1.9 billion investment.[20] As of August 2020, Sempra said it was still waiting to receive a 20-year export permit from the Mexican government for the proposed LNG terminal project.[21] Reuters subsequently reported that the Mexican government was looking to tie the awarding of the project's export permit to a requirement for Sempra's local subsidiary IENOVA to build the Vista Pacifico LNG Terminal - a separate LNG export facility in the port of Topolobampo on the Gulf of California - in order to help Mexico unload excess gas capacity.[22]

In November 2020, Sempra Energy announced that Phase I had reached a Final Investment Decision (FID), reportedly the only FID of any LNG terminal in 2020. The announcement placed the capital expenditures for ECA LNG Phase 1 at approximately US$2 billion, which would be funded with "a combination of equity contributions and debt." First LNG production from ECA LNG Phase 1 was expected in late 2024.[9]

In November 2020, Sempra and IEnova authorized TechnipFMC to proceed with engineering, procurement, and construction for the new export terminal.[23]

In December 2020, Total took a 16.6% equity stake in the project, with Sempra Energy and its local unit Infraestructura Energetica Nova (IEnova) each retaining 41.7% ownership.[6]

Financing

A final investment decision (FID) for the initial phase of the export facility, with estimated costs of US$2 billion, was reached in November 2020[24], after Costa Azul became the first LNG terminal in Mexico to receive an export permit from the government.[25] Financial close was reached for the LNG export terminal in December 2020. On the equity side, Sempra Energy and Total are together investing US$733 million. Debt financing of US$1.58 billion is being provided by a consortium of private banks comprising Banamex, BBVA, Mizuho, Natixis, Scotiabank and Sumitomo Mitsui Banking Corporation.[26]

Articles and resources

References

  1. "IEnova desarrolla, construye y opera infraestructura de energía en México". Energía Costa Azul. Retrieved 2021-04-21.
  2. "LNG Projects: Energía Costa Azul Liquefaction". Sempra LNG. Retrieved 2021-04-21.
  3. 3.0 3.1 3.2 "GIIGNL Annual Report (p 50)" (PDF). GIIGNL. November 2021.
  4. 4.0 4.1 4.2 "2021 World LNG Report (p 135)" (PDF). IGU. May 2021.
  5. "Mexico's Costa Azul LNG terminal receives first gas shipment". Professional Mariner. April 30, 2008.
  6. 6.0 6.1 6.2 Sempra says Total takes stake in major Mexican LNG project, Reuters, Dec. 10, 2020
  7. 7.0 7.1 7.2 7.3 7.4 7.5 7.6 7.7 Energia Costa Azul (ECA) LNG Project, NS Energy Business, accessed April 6, 2021
  8. 8.0 8.1 "About the Project | ECA Liquefaction Project". Energía Costa Azul. Retrieved 2022-06-01.
  9. 9.0 9.1 "Sempra Energy Announces FID For Landmark Energía Costa Azul LNG Export Project". Sempra Energy website. November 17, 2020. Retrieved 2021-05-22.
  10. "Spotlight: Mexico's LNG export project pipeline". BNamericas. March 29, 2022.
  11. Costa Azul LNG Terminal, Wikipedia, accessed March 2021
  12. "Exhibit 13.1 - Sempra Energy 2009 Annual Report". US Securities & Exchange Commission. Retrieved 2021-04-21.
  13. 13.0 13.1 13.2 PEMEX, Sempra LNG And Lenova Sign Memorandum Of Understanding For Developing Natural Gas Liquefaction Facilities in Mexico, Sempra Energy, Cision PR Newswire, 19 February 2015
  14. 14.0 14.1 Costa Azul LNG Import Facility, Whessoe: A Subsidiary of Samsung C&T, Accessed March 2021
  15. IENOVA expects decision on Mexico Costa Azul LNG export plant in early 2020, Reuters, Oct. 25, 2019
  16. 16.0 16.1 "Sempra's Energia Costa Azul LNG Said 'Prime Opportunity' for Rockies Gas Producers". NGI (Natural Gas Intelligence). May 28, 2021.
  17. "ECA Liquefaction Project". Energía Costa Azul. Retrieved 2022-06-01.
  18. Energía Costa Azul FID Still Set for Second Quarter Pending Export Approval, Natural Gas Intelligence, Apr. 24, 2020
  19. Clark Williams-Derry, "IEEFA update: Financial prospects falter for LNG projects", IEEFA, Apr. 24, 2020
  20. [1], Sempra LNG tweet, Jul. 9, 2020
  21. "Sempra still waiting for Mexican export permit for Costa Azul LNG". Reuters. August 5, 2020.
  22. Dave Graham, "Exclusive: Mexico tacks on request to Sempra unit's LNG export permit, say sources", Reuters, Aug. 21, 2020
  23. "TechnipFMC Receives Notice to Proceed for EPC Contract for Sempra LNG's and IEnova's Energía Costa Azul LNG Facility". TechnipFMC plc. November 17, 2020.
  24. "Energía Costa Azul Liquefaction Project | Information about the proposed liquefaction project at the site of the exisiting Energía Costa Azul facility in Baja California, Mexico". Energía Costa Azul. Retrieved 2022-03-15.
  25. Sheky Espejo, Dyna Mariel, Sempra reaches FID for Energía Costa Azul LNG terminal, gains export permit, S&P Global, Nov. 17, 2020
  26. Energia Costa Azul LNG Terminal Phase 1, IJGlobal TRANSACTION DATA, Mar. 25, 2021

Related GEM.wiki articles

External resources

External articles

Costa Azul LNG Terminal, Wikipedia, accessed November 2017