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    Sempra Awards Energia Costa Azul LNG Job

Summary

Sempra LNG & Midstream has awarded the EPC contract for its Energia Costa Azul (ECA) liquefaction project in northwest Mexico, but the project is some way from taking a final investment decision.

by: Mark Smedley

Posted in:

Natural Gas & LNG News, Americas, Corporate, Import/Export, Infrastructure, Liquefied Natural Gas (LNG), News By Country, Mexico, United States

Sempra Awards Energia Costa Azul LNG Job

Sempra Energy said June 25 that its subsidiary Sempra LNG & Midstream has selected a partnership of TechnipFMC and Kiewit as the engineering, procurement, construction and commissioning (EPC) contractor for its Energia Costa Azul (ECA) liquefaction project under development in the northwestern Mexican province of Baja California.

"The ECA liquefaction project is one of three North American LNG export projects we are developing -- two on the Gulf Coast and one in the Pacific Basin -- to help meet global demand for LNG," said Sempra Energy president and COO, Joseph A. Householder:  "This project is an exciting part of our LNG growth strategy and geographically positioned to serve Asian natural gas markets."

Permitted to be built adjacent to the existing ECA regas/import facility, the liquefaction/export project is being developed by Sempra to provide clients with direct access to [US] west coast LNG supplies.

"Having two highly qualified construction companies, TechnipFMC and Kiewit, with international liquefaction experience will contribute to the project's success," said Octavio Simoes, president of Sempra LNG & Midstream. "ECA liquefaction will help us achieve our LNG development objectives of having a world-class LNG export terminal on the west coast of North America."

Sempra said that development of the ECA liquefaction project is contingent upon various things including obtaining customer commitments; completing a definitive EPC contract; securing all necessary permits and approvals; obtaining financing and incentives; reaching a final investment decision; and other factors associated with the investment and the size, phasing and schedule of the development. 

In addition to the ECA liquefaction project, Sempra LNG & Midstream is developing a three-train, 14 mn mt/yr liquefaction facility at Cameron LNG in Hackberry, Louisiana that is already being built. Last week, Sempra LNG & Midstream announced that Bechtel was selected as the EPC contractor for a third project, Port Arthur LNG, a two-train 11 mn mt/yr liquefaction facility in Port Arthur, Texas.  

TechnipFMC has joint headquarters in London, Paris and Houston, while Kiewit is based in Omaha in the US state of Nebraska. No contract value details have yet been provided by any of the three firms.