SAN DIEGO, Nov. 17, 2020 /PRNewswire/ -- Sempra Energy
(NYSE: SRE) today announced that its subsidiary ECA Liquefaction
(ECA LNG), a joint venture between Sempra LNG and Infraestructura
Energética Nova, S.A.B. de C.V. (IEnova), has reached a final
investment decision (FID) for the development, construction and
operation of the ECA LNG Phase 1 natural gas liquefaction-export
project in Baja California,
Mexico. ECA LNG Phase 1 is currently the only liquefied
natural gas (LNG) export project in the world to reach FID in
2020.
"We are excited to continue to help unlock North America's energy potential with ECA LNG
Phase 1. This project would be the first LNG export facility on the
Pacific Coast of North America
that can help connect abundant natural gas supplies from
Texas and the Western U.S.
directly to markets in Mexico and
countries across the Pacific Basin," said Justin Bird, CEO of Sempra LNG. "This
important milestone is a testament to the resiliency of our team
and marks the latest step toward our goal to be North America's premier LNG infrastructure
company."
Estimated capital expenditures for ECA LNG Phase 1 are
approximately $2 billion. Sempra
expects to fund the project with a combination of equity
contributions and debt. First LNG production from ECA LNG
Phase 1 is expected in late 2024.
"As one of the largest private investments in the history of
Baja California, ECA LNG's
liquefaction-export project is expected to help support the Mexican
economy through investment, tax revenue and jobs," said
Tania Ortiz Mena, CEO of
IEnova. "The project is also expected to positively impact the
local community through social investment programs as well as help
position Mexico as a key player in
the global trade of natural gas."
ECA LNG Phase 1 will be built and operated by Sempra LNG and
IEnova, Sempra Energy's subsidiary in Mexico, as a single-train liquefaction
facility with a nameplate capacity of 3.25 million tonnes per annum
(Mtpa) of LNG and an initial offtake capacity of approximately 2.5
Mtpa of LNG.
Exports of LNG from ECA LNG Phase 1 are expected to improve the
trade balances of the U.S. and Mexico. Its construction is expected to create
more than 10,000 direct and indirect jobs as a result of increased
economic activity and social investments in both countries.
Approximately 75 full-time jobs are expected to be added to the
operations of ECA LNG.
ECA LNG has secured definitive 20-year sale and purchase
agreements with Mitsui & Co., Ltd. and an affiliate of Total SE
for the purchase of approximately 2.5 Mtpa of LNG from Phase 1 of
the project. Additionally, ECA LNG and Total SE continue to work
toward a potential equity investment in the project by Total
SE.
In February, ECA LNG executed a lump-sum, turn-key engineering,
procurement and construction contract with an affiliate of
TechnipFMC plc for Phase 1 of the LNG export facility.
Sempra LNG is developing additional LNG export facilities on the
Gulf Coast and Pacific Coast of North
America, including a potential Phase 2 of the ECA LNG
project. The successful development and ultimate construction of
both phases of ECA LNG's project and Sempra Energy's other LNG
export projects are subject to a number of risks and uncertainties
and there can be no assurance that these projects will be
completed.
About Sempra LNG
Sempra LNG's mission is to be
North America's premier LNG
infrastructure company by providing sustainable, safe and reliable
access to U.S. natural gas for global markets. Sempra LNG owns
a 50.2% interest in Cameron LNG, a 12 Mtpa export facility
operating in Hackberry, Louisiana
and is currently developing additional LNG export facilities on the
Gulf Coast and Pacific Coast of North
America through Cameron LNG expansion, Port Arthur LNG in
Texas and Energía Costa Azul LNG
in Mexico. Through its disciplined value creation process,
Sempra LNG evaluates expansion opportunities at each of these
locations and other infrastructure investments along the LNG value
chain.
About IEnova
IEnova develops, builds and operates
energy infrastructure in Mexico.
As of the end of 2019, the company has 1,300 employees and
approximately US$9.6 billion in total
assets, making it one of the largest private energy companies in
the country. IEnova was the first energy infrastructure company to
be listed on the Mexican Stock Exchange.
This press release contains statements that constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are based on assumptions with respect to the future,
involve risks and uncertainties, and are not guarantees. Future
results may differ materially from those expressed in the
forward-looking statements. These forward-looking statements
represent our estimates and assumptions only as of the date of this
press release. We assume no obligation to update or revise any
forward-looking statement as a result of new information, future
events or other factors.
In this press release, forward-looking statements can be
identified by words such as "believes," "expects," "anticipates,"
"plans," "estimates," "projects," "forecasts," "should," "could,"
"would," "will," "confident," "may," "can," "potential,"
"possible," "proposed," "target," "pursue," "outlook," "maintain,"
or similar expressions, or when we discuss our guidance, strategy,
goals, vision, mission, opportunities, projections or
intentions.
Factors, among others, that could cause our actual results
and future actions to differ materially from those described in any
forward-looking statements include risks and uncertainties relating
to: decisions, investigations, regulations, issuances of permits
and other authorizations, and other actions by (i) the U.S.
Department of Energy and other regulatory and governmental bodies
and (ii) states, counties, cities and other jurisdictions in the
U.S., Mexico and other countries
in which we operate or do business; the success of business
development efforts, construction projects and major acquisitions
and divestitures, including risks in (i) the ability to make a
final investment decision, (ii) completing construction projects on
schedule and budget, (iii) the ability to realize anticipated
benefits from any of these efforts once completed, and (iv)
obtaining the consent of partners; the impact of the
COVID-19 pandemic on our (i) ability to commence and complete
capital and other projects and obtain regulatory approvals, (ii)
supply chain and current and prospective counterparties,
contractors, customers, employees and partners, (iii) liquidity,
resulting from bill payment challenges experienced by our
customers, decreased stability and accessibility of the capital
markets and other factors, and (iv) ability to sustain operations
and satisfy compliance requirements due to social distancing
measures or if employee absenteeism were to increase
significantly; the resolution of civil and criminal
litigation, regulatory inquiries, investigations and proceedings,
and arbitrations; actions by credit rating agencies to downgrade
our credit ratings or to place those ratings on negative outlook
and our ability to borrow at favorable interest rates; moves to
reduce or eliminate reliance on natural gas and the impact of the
extreme volatility of oil prices on our businesses and development
projects; weather, natural disasters, accidents, equipment
failures, computer system outages and other events that disrupt our
operations, damage our facilities and systems, cause the release of
harmful materials, cause fires and subject us to liability for
property damage or personal injuries, fines and penalties, some of
which may not be covered by insurance (including costs in excess of
applicable policy limits), may be disputed by insurers or may
impact our ability to obtain satisfactory levels of affordable
insurance; cybersecurity threats to storage and pipeline
infrastructure, the information and systems used to operate our
businesses, and the confidentiality of our proprietary information
and the personal information of our customers and employees;
expropriation of assets, the failure of foreign governments and
state-owned entities to honor the terms of contracts, and property
disputes; volatility in foreign currency exchange, interest and
inflation rates and commodity prices and our ability to effectively
hedge the risk of such volatility; changes in tax and trade
policies, laws and regulations, including tariffs and revisions to
or replacement of international trade agreements, such as
the United States-Mexico-Canada
Agreement, that may increase our costs or impair our ability to
resolve trade disputes; and other uncertainties, some of which may
be difficult to predict and are beyond our control.
These risks and uncertainties are further discussed in the
reports that Sempra Energy has filed with the U.S. Securities and
Exchange Commission (SEC). These reports are available through the
EDGAR system free-of-charge on the SEC's website, www.sec.gov, and
on the company's website at www.sempra.com. Investors
should not rely unduly on any forward-looking statements.
Sempra LNG, Cameron LNG, Port Arthur LNG and ECA LNG are not
the same company as San Diego Gas & Electric (SDG&E) or
Southern California Gas Company (SoCalGas), and Sempra LNG, Cameron
LNG, Port Arthur LNG and ECA LNG are not regulated by the
California Public Utilities Commission.
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SOURCE Sempra LNG