Vista Pacifico LNG Terminal

From Global Energy Monitor
This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.
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Vista Pacifico LNG Terminal is a proposed LNG export terminal in Mexico.[1]

Location

The map below shows the approximate location of the proposed terminal in Topolobampo, Sinaloa, Mexico.

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Project Details

  • Operator: Vista Pacifico LNG S.A.P.I de C.V.[2]
  • Owner: Sempra Infrastructure, CFEnergía, TotalEnergies[1][3][4]
  • Parent company: Sempra Energy, CFEnergía, TotalEnergies[1][3]
  • Location: Topolobampo, northwestern Sinaloa, Mexico[5]
  • Coordinates: 25.581941, -109.059196 (approximate)
  • Type: Export[5]
  • Capacity: 4 mtpa[5][6]
  • Status: Proposed[5]
  • Start Year: 2025[5]
  • Cost:
  • Financing:
  • FID status: Pre-FID[7]

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

Background

In 2020, US-based Sempra Energy and its subsidiary IEnova announced plans to develop a new LNG production/export terminal in Mexico's Sinaloa state, with a capacity of 4 mtpa (million tonnes per annum).[5]

On November 18, 2020, developers submitted an application to the US Department of Energy (DOE), through the joint venture Vista Pacifico LNG, to export 240 Bcf of natural gas from the US to Mexico and re-export about 4 mtpa.[8] The DOE approved Vista Pacífico's application in April 2021.[9] The project envisioned exports of LNG to both FTA and non-FTA countries[8][9] and was expected to start commercial operations by 2025.[5]

Plans called for the new LNG terminal to be constructed at the port of Topolobampo, Sinaloa, comprising one 4-mtpa liquefaction unit, one 180,000-cubic-meter tank, an LNG jetty and other related facilities. Additional LNG liquefaction trains were also under consideration. The developers aimed to supply LNG to geographically strategic Asian markets, where LNG demand was expected to rise.[5]

In January 2022, Mexico's Federal Electricity Commission signed a non-binding memorandum of understanding with Sempra Energy calling for the two companies to jointly develop the Vista Pacífico LNG terminal. The agreement would allow CFE to take advantage of excess pipeline capacity on the Texas-to-Mexico network, including the El Encino-Topolobampo Gas Pipeline; some of the surplus Texas gas would be shipped as LNG to the Pichilingue LNG Terminal, just across the Gulf of California, where it would be regasified to supply CFE's power plants in Baja California Sur.[10][11] Sempra Energy would use the Vista Pacífico terminal to export lower-cost Permian Basin natural gas to high-demand markets in Asia.[12]

In March 2022, TotalEnergies announced that it had signed a memorandum of understanding with Sempra Energy allowing TotalEnergies to offtake one-third of future production from the Vista Pacífico terminal and assume a minimum stake of 16.6% in the project.[3]

In July 2022, Sempra Energy and CFE reported continued progress on the Vista Pacífico project. While plans remained preliminary and non-binding, the two companies were reportedly working together to define the terminal’s configuration and advance engineering and permitting for the project.[6][1]

In December 2022, the US Department of Energy approved permits allowing Sempra to export up to 200 bcf/y (billion cubic feet per year) of US natural gas to Mexico for liquefaction at its Vista Pacífico and Costa Azul LNG terminals and onward shipment to non-FTA countries through December 2050.[4][13][14] Sempra had been making the case that additional international gas supply was crucial in the wake of Russia's February 2022 invasion of Ukraine.[15]

Opposition

Numerous citizens' groups in Mexico, including Greenpeace, Nuestro Futuro, Alianza Mexicana Contra el Fracking, Conexiones Climáticas and Planeteando have called for the government to cancel all pending LNG export terminal projects in the country. The groups argue that LNG terminals create a host of serious negative impacts for local communities, including health effects from toxic chemicals such as benzine and nitrogen oxides, climate change associated with heightened levels of greenhouse gas emissions, devastation of marine life due to dredging, and the associated negative economic impacts on fisheries.[16]

Articles and resources

References

  1. 1.0 1.1 1.2 1.3 "CFE and Sempra Infrastructure Expand Agreements for the Development of Energy Infrastructure in Mexico". Sempra. July 21, 2022.{{cite web}}: CS1 maint: url-status (link)
  2. "Vista Pacifico LNG S.A.P.I de C.V. - FE Dkt. No. - 20-153-LNG". Office of Fossil Energy and Carbon Management, US Dept of Energy. April 21, 2023.
  3. 3.0 3.1 3.2 "TotalEnergies and Sempra Expand North American Strategic Alliance for the Development of LNG Exports and Renewables". TotalEnergies. March 31, 2022.{{cite web}}: CS1 maint: url-status (link)
  4. 4.0 4.1 "GIIGNL Annual Report 2023 (p 47)" (PDF). GIIGNL. July 14, 2023.{{cite web}}: CS1 maint: url-status (link)
  5. 5.0 5.1 5.2 5.3 5.4 5.5 5.6 5.7 Sempra Energy and Partner Planning New LNG Terminal in Mexico, The TEX Report, November 26, 2020
  6. 6.0 6.1 "Mexico's CFE, Sempra LNG Signal Potential 'Path Forward' for Vista Pacífico Exports". Natural Gas Intel. July 25, 2022.{{cite web}}: CS1 maint: url-status (link)
  7. De La Rosa, Claudia (June 2, 2023). "LNG developers in Mexico face long road ahead". ICIS.
  8. 8.0 8.1 "Vista Pacifico LNG S.A.P.I de C.V. - FE Dkt. No. - 20-153-LNG". US Department of Energy. February 22, 2022.{{cite web}}: CS1 maint: url-status (link)
  9. 9.0 9.1 "ORDER GRANTING LONG-TERM AUTHORIZATION TO EXPORT NATURAL GAS TO MEXICO AND TO OTHER FREE TRADE AGREEMENT NATIONS" (PDF). US Dept of Energy, Office of Fossil Energy. April 9, 2021.{{cite web}}: CS1 maint: url-status (link)
  10. "La Comisión Federal De Electricidad y Sempra Infraestructura Firman Acuerdo de Entendimiento para el Desarrollo de Proyectos Trascendentes para el Suministro de Gas Natural". Sempra Infraestructura. January 31, 2022.{{cite web}}: CS1 maint: url-status (link)
  11. "Biden prioriza acuerdos ambientales antes de aprobar gas natural para el Golfo de California". El Independiente Baja California Sur. March 1, 2021.{{cite web}}: CS1 maint: url-status (link)
  12. "New Infrastructure Opportunity on Pacific Coast". Sempra Energy. January 31, 2022.{{cite web}}: CS1 maint: url-status (link)
  13. "Energía Costa Azul, S. de R.L. de C.V.- Docket No. 18-145-LNG" (PDF). US Department of Energy. December 20, 2022.{{cite web}}: CS1 maint: url-status (link)
  14. García, Karol (2023-07-25). "México comenzará exportación de gas natural licuado en el 2025". El Economista.{{cite web}}: CS1 maint: url-status (link)
  15. "U.S. allows Sempra to re-export LNG from Mexico". Reuters. December 20, 2022.{{cite web}}: CS1 maint: url-status (link)
  16. "El alto de EEUU a proyectos de Gas Natural Licuado evidencia que el plan de México para exportarlo es peligroso y debe ser cancelado". Greenpeace México. 2024-01-26.{{cite web}}: CS1 maint: url-status (link)

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