About the Project

About the Project

Project Description

The proposed Energía Costa Azul (ECA) Liquefaction Project would add natural gas liquefaction facilities to the existing ECA liquefied natural gas (LNG) receipt and regasification terminal located north of Ensenada in Baja California, Mexico.

The terminal’s existing facilities include one marine berth and breakwater, two LNG tanks of 160,000 m³ each, LNG vaporizers, nitrogen injection systems and pipeline inter-connections. To learn more about the existing terminal, click here.

The liquefaction project would add natural gas receipt, treatment and liquefaction capabilities and loading of LNG cargoes. The proposed facilities include two natural gas liquefaction trains capable of producing approximately 12.4 million metric tons per annum (Mtpa) in the aggregate, or approximately 658 billion cubic feet of natural gas per year, one additional LNG storage tank, one additional berth and other associated facilities. Once in operation, the project will be 100 percent self sufficient in terms of electricity and water usage.

Project Timeline

October 2014: Size and technology defined as well as the initial gas and transport assessment finalized.

November 2014: Mexico’s Energy Regulatory Commission (CRE) initiates new regulatory framework for liquefaction facilities.

February 2015: Sempra LNG & Midstream, IEnova and MGI Enterprises, a subsidiary of Pemex, entered into a Memorandum of Understanding to collaborate in exploring the development of a natural gas liquefaction project at Energía Costa Azul.

January 2016: Initiated pre-filing review with Mexican regulatory agencies.

December 2016: Filed permit applications with Mexico’s Safety, Energy and Environmental Agency (ASEA) and Department of Energy (SENER). The filings included the environmental impact assessment, environmental risk studies and social impact study.

February 2017: Filed applications with CRE for the liquefaction facilities, power generation and regasification permits.

Development of the ECA Liquefaction Project is contingent on several factors, including but not limited to securing all necessary permits and approvals, completing the required commercial agreements, obtaining financing and reaching a final investment decision.

Competitive Advantages

Energía Costa Azul’s strategic west coast location provides shipping advantages to countries in the Pacific Basin including Asia, Middle East and South America.

Access to low-cost Western U.S. natural gas basins and existing pipeline infrastructure.

Our partnership with Mexico’s state-owned energy company, Pemex, adds a sponsor with experience developing O&G infrastructure in Mexico and importing U.S. gas.

Project Partners

Sempra LNG & Midstream

Sempra LNG & Midstream develops and builds LNG receipt terminals, liquefaction facilities and midstream natural gas infrastructure. The company developed one of the first liquefaction and export facilities in the United States at the site of the Cameron LNG regasification terminal in Louisiana, a total investment of approximately $10 billion. Sempra LNG & Midstream is also active in the sale of LNG worldwide.

IEnova

IEnova, a Sempra Energy company, develops, designs, builds and operates energy infrastructure in Mexico. With approximately 900 employees and more than $7 billion dollars invested*, our footprint sprawls several lines of business encompassing the entire energy infrastructure value chain open to private investment in Mexico.

*By year-end 2016, including projects in operation and construction.

MGI Enterprises

MGI Enterprises is a subsidiary of Pemex, a state-owned enterprise in Mexico. MGI Enterprises and its related companies have experience in the development and operation of a wide range of energy assets throughout the entire value chain of the oil, gas, and petrochemical sectors, as well as in the commercialization and transport of commodities (crude oil, refined products, petrochemicals, and natural gas) within Mexico and internationally.