IEnova, the Mexican unit of California-based Sempra Energy, is looking to expand its electricity exports to the U.S. However, the developments of its Energia Costa Azul (ECA) terminal are still a priority; according to a report by S&P Global.
Firstly, during a conference call with investors, to review the company’s 1Q financial results, Tania Ortiz Mena, CEO, said the Energia Costa Azul improvements are the top priority of IEnova.
Secondly, IEnova has three major divisions indeed; the natural gas one, the energy storage and power; the first two account for nearly 90% of the company’s revenue according to the S&P report, citing what Mena said on the conference.
Thirdly, the power division of the company has electricity generation plants all over Mexico, many of them do export electricity to the U.S. “We do continue to see opportunities in renewables, particularly cross-border projects in Baja California; we also see opportunities for expansion to feed new offtakers along the national gas pipelines.” Said Mena.
Nevertheless, expansion on the ECA are the top priority for the company; as it is working to add liquefaction capabilities at the regasification unit of the plant, in order to export.
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Pipeline co-owned by IEnova and TC Energy under no risk of interruption
Moreover, as we reported previously, the company back in December 2020 got the approval to export LNG from the ECA. It was the first authorization of its kind in its history to ship this product to international markets.
In fact, the project involved a $2 million investment and chose Technip MCF as an engineering contractor, procurer, and constructor. According to S&P, the total capacity of this first phase will have a capacity of 3,5 metric tons per year. But, the second phase would have an extended capacity of 12 mt/year.
On the other hand, S&P reports about some rumors that the pipeline that IEnova co-owns with TC Energy would have been in danger of cancelation. However, those worries were dismissed by Ortiz Mena.
Furthermore, she said that the pipeline is operating normally and it is under no risk whatsoever of being canceled or interrupted. However, she said there are some administrative issues, those do not imply risk of any kind. “It is under no risk of being interrupted in any way,” she said.
Finally, about the changes in the hydrocarbons law, Ortiz Mena said that the law is still too broad in its current form, to be concerned about it; at least in IEnova’s regard. As it holds permits to store liquid fuels.