French major TotalEnergies and energy infrastructure company Sempra said they plan to expand their North American alliance with the new Vista Pacifico LNG project in Sinaloa, Mexico.
The companies have signed two memoranda of understanding (MoU): one for Sempra Infrastructure's proposed Vista Pacífico LNG project in Mexico; and a second for renewable energy and energy storage in California and Northern Mexico.
The MoU for Vista Pacífico LNG has TotalEnergies potentially contracting for approximately one-third of the long-term export production of the liquefied natural gas (LNG) facility under development on Mexico's West Coast, as well as TotalEnergies' potential participation as a minority equity investor in the project.
Sempra Infrastructure and TotalEnergies are already participants in two joint venture projects: Cameron LNG, a 12-Mtpa LNG export facility operating in Hackberry, Louisiana, and 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, which would produce 4 million metric tonnes of LNG per year, is expected to be a mid-scale facility that would source lower-cost natural gas from the Permian Basin for export to high-demand markets, including Asia, Europe and South America, and to satisfy natural gas demand requirements in other regions of Mexico.
The companies' second MoU provides a framework for broader cooperation in the development of North American renewable energy projects, company officials said, including the potential acquisition by Sempra Infrastructure of a target of 30% of TotalEnergies' equity interest in a proposed offshore wind project, which would result in 24% of the project, in preparation for an upcoming auction off the coast of California.
With last week's energy accord between the U.S. 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 added.
“We are pleased to further strengthen our partnership with Sempra in North America in LNG and to extend it to renewables. Over the past years, TotalEnergies has become the leading exporter of U.S. 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 U.S.,” said Patrick Pouyanné, chairman & CEO of TotalEnergies. “This new step in our collaboration allow us to go further in our ambition to offer our customers sustainable, affordable and reliable energy, in line with our transformation into a global multi-energy company.”
