Sempra and Mexico’s CFE to jointly develop LNG project

sempra energy SIP

Sempra Infrastructure, a subsidiary of Sempra, the California-based energy infrastructure company, announced this Monday it signed a memorandum of understanding with Mexico’s electric utility CFE to jointly develop top gas projects in the country.

Firstly, the projects include the Vista Pacifico LNG a natural gas liquefaction project in Topolobampo, Sinaloa; a natural gas regasification project in La Paz, Baja California Sur; and the resumption of operations of the Guaymas-El Oro pipeline in Sonora.   

Moreover, the first two projects will allow CFE to optimize excess natural gas and pipeline capacity from Texas to Topolobampo; at the same time increasing its natural gas supply to its power plants in Baja California Sur.

Such an output would supply the state with low-cost electricity and lower-emission fuels. In addition, according to the statement will promote economic growth and development of the region; with a view toward strengthening CFE’s position in global LNG markets.

On the other hand, the return to service of the Guaymas–El Oro pipeline in Sonora involves a new route. The new path of the pipeline comes after a mutual understanding between the Yaqui community and CFE through continued respectful dialogue.

Also recommended for you: Daimler, NextEra Energy, and BlackRock to advance EV charging stations. Click here to read.

Sempra to reaffirm its position in Mexico

Through the new path, CFE would supply natural gas to industrial; commercial, and residential markets in the Pacific Coast of Mexico; Baja California Sur, as well as the Vista Pacifico LNG facility.

Furthermore, the agreement intends to advance Mexican President Andres Manuel Lopez Obrador’s commitment to energy transition. The projects would supply clean natural gas to the state of Sonora; while the pipeline would provide energy security to the region, without any hazard to the Yaqui people.

As a result, the MoU intends to both strengthen CFE’s position as a top supplier, with the potential to participate in the global market of LNG; while reaffirming Sempra’s role as one of the main enablers of critical new energy infrastructure in Mexico.

Finally, as we reported previously, the Vista Pacifico LNG would import natural gas from US shale basins and then re-export it as LNG. It would have an export capacity of 3-4 million metric tons per year.

Related posts

Natural Gas Storage Market continues loosening


Genesis Energy reports $50 M loss due to hurricane season


Election may define important midstream projects fate