10 Dec Total takes stake in $2 billion LNG project in Mexico
Total SE has acquired a 16.6% stake in a liquefied natural gas (LNG) project in Northern Mexico which is being built by US firm Sempra Energy and its local unit Infraestructura Energetica Nova (IEnova).
The US$2 billion Energia Costa Azul (ECA) LNG facility, near the port of Ensenada, is one of the biggest energy infrastructure projects under development in Mexico.
Sempra has been faced with months of delay, but recently obtained an export permit from the Mexican government for the facility.
Under the terms of the agreement, Total will take its equity stake in phase 1 of ECA LNG, while Sempra LNG and IEnova will each hold 41.7% ownership, Sempra said in a statement.
ECA LNG phase 1 is being built at an existing IEnova regasification facility. Total’s equity acquisition does not include an equity interest in the regasification plant.
“We are excited to extend our strategic alliance with Total, a global LNG leader, as we commence construction on our landmark ECA LNG Phase 1 project and help expand Total’s North America LNG infrastructure portfolio,” said Sempra LNG CEO Justin Bird.
“This agreement is the next step in advancing our long-term strategy to provide the world with access to diverse US natural gas basins that can offer reliable and more secure forms of energy from both the Pacific and Gulf Coasts.”