France’s Total buys stake in $2bn Mexico LNG export project

lng project
Energía Costa Azul regasification terminal in Baja California, Mexico. Image credit: Sempra LNG.

French oil and gas company Total has acquired a 16.6% stake in the $2bn ECA LNG Phase 1 LNG export project, to be located in Baja California, Mexico.

ECA LNG Phase 1 is the only LNG project in the world that has reached a final investment decision (FID) in 2020, as coronavirus hits global oil and gas markets.

ECA LNG Phase 1 is being undertaken a joint venture of Sempra LNG and Infraestructura Energética Nova (IEnova).

With Total’s participation, Sempra LNG and IEnova will each retain 41.7% stake in the project.

The French company, earlier this year, has signed an agreement to procure approximately 1.7 million tonnes per annum (Mtpa) of LNG from the export facility.

Japan’s Mitsui has also previously signed to buy approximately 0.8 Mtpa of LNG from phase 1 of the project.

Sempra LNG CEO Justin Bird said: “This agreement is the next step in advancing our long-term strategy to provide the world with access to diverse U.S. natural gas basins that can offer reliable and more secure forms of energy from both the Pacific and Gulf Coasts.”

To be built at IEnova’s existing Energía Costa Azul LNG regasification facility, ECA LNG Phase 1 will be a single-train liquefaction facility with a nameplate capacity of 3.25Mtpa.

It is the first Pacific Coast LNG export project that will have direct access to vast natural gas supplies in Texas and the Western US.

Total’s is already a partner to Sempra LNG in the 12 Mtpa Cameron LNG export facility operating in Hackberry, Louisiana.

The first phase of Cameron LNG commenced commercial operations in August 2020.