U.S. energy company Sempra Energy said on Friday, November 5th, it will continue developing liquefied natural gas (LNG) export plants while building the first phase of the Costa Azul LNG export plant in Mexico.
Justin Bird, CEO of Sempra Infrastructure, told analysts on the company’s earnings call that Costa Azul was “on time and on budget” to produce the first LNG by the end of 2024. Costa Azul will produce about 3.3 million tonnes per annum (MTPA) of LNG.
In addition, Bird said Sempra remains focused on working with partners at Cameron LNG to develop a roughly 6-MTPA fourth liquefaction train and optimize operations at the existing 15-MTPA, three-train facility in Louisiana.
Bird also said Sempra was developing the roughly 4.0-MTPA Vista Pacifico LNG export plant on Mexico’s Pacific Coast located next to its refined products terminal in Topolobampo.
Vista Pacifico would be connected to two existing pipelines and would source gas from the Permian basin in Texas and New Mexico for export to Asian markets, where LNG demand is growing fast.
As for customers interested in LNG, Bird said; “We are seeing a real uptick in our discussions both in Asia and Europe and…South America.”
“We have a competitive advantage, the ability to dispatch directly into Europe and Asia,” Bird said.
“Over the long term…we still see demand for LNG growing mid- to high single digits, which supports our long-term very bullish view on LNG development.”
In Europe, Bird said “there’s a tremendous amount of recognition… about the role for natural gas and specifically, LNG. And there’s certainly a new risk premium being assigned to pipeline gas.”
He was referring to delays in Russia sending pipeline gas to Europe in recent months, which helped cause prices in Europe and Asia to hit record highs in October.
Source: El Financiero