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Sempra to proceed with Costa Azul LNG project despite virus concerns

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LNG Industry,

According to Reuters, Sempra Energy has announced that it will proceed with its plan to construct the first phase of the Costa Azul LNG export facility in Mexico.

The first phase of the project is designed to have one liquefaction train. Once complete, this train will have a production capacity of approximately 2.4 million tpy of gas.

Despite the fact that many companies are cutting back on growth due to the decrease in gas demand caused by the coronavirus pandemic, Sempra is reportedly aiming to take a final investment decision (FID) in 2Q20.

According to Reuters, Energia Costa Azul LNG has non-binding 20-year agreements with units of France’s Total SA, as well as Japan’s Mitsui & Co. and Tokyo Gas Co. Ltd. Under the terms of the agreements, both of these companies will buy approximately 0.8 million tpy of LNG.

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