Sempra Infrastructure agreed to potentially develop an LNG terminal in Salina Cruz, Oaxaca, with Mexico's Federal Electricity Commission (CFE), a press release announced on July 21.
The partnership signed a memorandum of understanding (MOU) on Jan. 31 to develop proposed projects, such as the Vista Pacífico LNG project in Topolobampo, Sinaloa. On July 21, the companies expanded the MOU to explore the potential development of the Oaxaca LNG terminal, promoting economic growth and development in southern-southeastern Mexico.
The Oaxaca LNG terminal development was one of several agreements between Sempra and CFE to advance the development of critical energy infrastructure projects in Mexico, ultimately leading to the restoration of service provided by the Guaymas-El Oro pipeline.
In addition to the Oaxaca LNG terminal, the partnership also agreed to reroute the Guaymas-El Oro pipeline in Sonora, as well as define the configuration of the Vista Pacífico LNG project to advance engineering and permitting efforts.
These energy infrastructure projects would potentially allow CFE to use existing natural gas pipeline systems, provide additional sources of LNG supply for isolated markets in Mexico and continue to expand LNG supplies to the global market, as well as foster economic growth and social wellbeing in North America.
Both LNG development projects are preliminary and non-binding and, along with the Guaymas-El Oro pipeline reroute project, remain subject to commitments such as "feasibility studies, reaching definitive customer, construction and partnership agreements, securing all necessary permits, obtaining financing and incentives, receiving respective board approval and reaching a final investment decision," according to the release.
Recommended Reading
China Not Continuing Mega Oil-backed Loans to Latin America
2024-06-18 - China, which lent around US$120 billion to Latin America and the Caribbean between 2005-2023, isn’t expected to resume the mega oil-backing loans of yesteryear as the focus turns to debt negotiations.
Berntsen Joins Xcel as Executive VP, Chief Legal and Compliance Officer
2024-05-22 - Rob Berntsen is assuming the role from Amanda Rome, who had been in the position on an interim basis.
Riley Permian Increases Stake in West Texas Power JV with Conduit
2024-05-22 - Riley Exploration Permian increased its ownership in RPC Power, a JV with Conduit Power, to 50% from 35% and has agreed to sell up to 10 MMcf/d of natural gas as feedstock supply for the generation facilities as RPC plans to sell to ERCOT.
Upstream, Midstream Dividends Declared in the Week of July 8, 2024
2024-07-11 - Here is a selection of upstream and midstream dividends declared in the week of July 8.
Solaris Stock Jumps 40% On $200MM Acquisition of Distributed Power Provider
2024-07-11 - With the acquisition of distributed power provider Mobile Energy Rentals, oilfield services player Solaris sees opportunity to grow in industries outside of the oil patch—data centers, in particular.