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.

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