French energy giant TotalEnergies is looking to buy volumes from Sempra’s planned Vista Pacífico LNG export project in Mexico’s Topolobampo.
Sempra Infrastructure, a subsidiary of Sempra, and TotalEnergies signed a memorandum of understanding for the LNG export development, expanding their North American strategic alliance, according to a statement on Thursday.
The duo also signed a memorandum for a proposed offshore wind project in California under development by TotalEnergies, as well as other renewable energy and energy storage projects under development by Sempra Infrastructure in Northern Mexico.
As per the deal for Vista Pacífico LNG, it contemplates TotalEnergies potentially contracting for approximately one-third of the long-term export production of the LNG facility under development on Mexico’s West Coast, Sempra said.
Furthermore, the deal includes TotalEnergies’ potential participation as a minority equity investor in the project.
Sempra said these deals are non-binding and remain subject to a number of risks and uncertainties.
These include reaching definitive agreements, securing all necessary permits and reaching a final investment decision, it said.
Already partners in two LNG plants
Sempra Infrastructure and TotalEnergies are already participants in two joint venture projects.
Besides the 12 mtpa Cameron LNG plant in Louisiana, the two firms are partners in Energia Costa Azul (ECA) LNG Phase 1, an approximately 3-mtpa liquefaction facility under construction in Baja California, Mexico.
The proposed Vista Pacífico LNG project would have a capacity of 4 mtpa and would connect to two existing pipelines.
In addition to this deal, Sempra Infrastructure signed a non-binding agreement earlier this year with Comisión Federal de Electricidad, Mexico’s state-owned electric company, for the potential joint development of the Vista Pacífico LNG project.
“With last week’s energy accord between the US and European Commission, alliances between some of the leading energy companies like TotalEnergies and Sempra are increasingly important to transatlantic trade and energy security,” said Jeffrey W. Martin, chairman and chief executive officer of Sempra.
“We own one of the largest energy networks in North America, and by collaborating with TotalEnergies to create additional scale advantages in LNG and renewable energy, our customers benefit from having access to cleaner and more affordable energy options and improved security of supply,” Martin said.
“Over the past years, TotalEnergies has become the leading exporter of US LNG and has built up a pipeline of 4 GW of solar projects and 3 GW of offshore wind projects currently under development in the US,” said Patrick Pouyanne, chairman and chief executive officer of TotalEnergies.
