US LNG developer Sempra Energy on Thursday said that it expected Mexican authorities to give an export permit soon. The permit will enable the company to make a final investment decision (FID) this year to construct its planned $1.9-billion Costa Azul LNG export terminal. Sempra has been waiting for the permit since earlier this year, but it was held up due to some reasons, including the COVID-19 pandemic. Sempra LNG and its subsidiary IEnova will construct the proposed export plant in the existing Costa Azul LNG import plant which became operational in 2008.
The project has already secured 20-year agreements with Total and a unit of Mitsui for a total of 2.5 million tons/year of LNG from the terminal’s first phase. Exporting LNG from Mexico’s Pacific coast to Asia provides an advantage over rivals in the US Gulf Coast because it is closer to growing Asian markets. Besides, it bypasses the traffic and fee of the Panama Canal.
