Sempra Infrastructure received export licenses for two LNG projects | Daily News Byte

[ad_1]

HOUSTON, December 22, 2022 /PRNewswire/ — Sempra Infrastructure, a subsidiary of Sempra (NISE: SRE) (BMW: SRE), announced today that Energia Costa AzulS. de RL de CV (ECA LNG) and Vista Pacifico, SAPI de CV (Vista Pacifico LNG) received authorization from the US Department of Energy (DOE) to re-export liquefied natural gas (LNG) from the US from Mexico countries that have not signed a free trade agreement (FTA). DOE’s significant action is an important milestone for these two development projects, each one a step closer to supporting global energy security and environmental goals.

“Advancement of new infrastructure investments is critical to supporting the energy needs of America’s allies, and we are grateful for the leadership of the Biden administration, the U.S. Secretary of Energy Jennifer Granholmand various stakeholders in Congress — including Sens. Joe Manchin, Ted Cruz and John Cornyn. These export projects are expected to support efforts across the Indo-Pacific region to diversify energy supply while transitioning away from coal in power generation,” he said. Justin Bird, CEO of Sempra Infrastructure. “They are also expected to help strengthen U.S. trade relations, as well as create new jobs and encourage U.S. and Mexico economy”.

Pursuant to permits issued by the DOE, Vista Pacifico LNG is authorized to re-export up to 200 billion cubic feet per year (Bcf/yr) of U.S. natural gas LNG from a project being developed in Topolobampo, Sinaloa, Mexico any country with which United States there is no free trade agreement that requires national treatment for trade in natural gas. Vista Pacifico LNG is envisioned to be a medium-scale facility with approximately 3.5 million tonnes per annum (Mtpa) of export capacity. Sempra Infrastructure is advancing the development of Vista Pacifico LNG in collaboration with Mexico Federal Commission on Electric Energy (CFE), as previously announced.

DOE also increased ECA’s permitted Phase 2 LNG export volume, allowing it to re-export up to 636 Bcf/yr of U.S. natural gas LNG from the proposed project to Ensenada, Baja California, Mexico countries that are not members of the FTA. Both licenses are valid for a period beginning on the day of the first commercial re-export December 2050.

The proposed ECA LNG Phase 2 is expected to consist of two trains and one LNG storage tank and produce approximately 12 Mt per year of export capacity. ECA LNG Phase 1 was licensed to export without a free trade agreement in 2019 and is currently under construction, with commercial operations expected in 2025.

The development of ECA LNG Phase 2 and Vista Pacifico LNG is dependent on the completion of the necessary commercial agreements, securing all necessary permits, obtaining financing and making a final investment decision, among other factors.

About Sempra infrastructure

Sempra infrastructure delivers energy for a better world. Through the combined strength of its assets in North America, the company is committed to enabling the delivery of cleaner energy for its customers. With a constant focus on sustainability, innovation, world-class safety, advocacy for people, resilient operations and social responsibility, its more than 2,000 employees develop, build and operate clean energy, energy grids and LNG and net-zero solutions expected to play a key role in the energy systems of the future. For more information about Sempra Infrastructure, visit www.SempraInfrastructure.com and Twitter.

This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on forward-looking assumptions, involve risks and uncertainties and they are not guarantees. Future results may differ materially from those expressed or implied in any forward-looking statement. These forward-looking statements represent our estimates and assumptions only as of the date of this press release. We undertake no obligation to update or revise any forward-looking statement as a result of new information, future events or other factors.

In this press release, forward-looking statements can be identified by words such as “believes”, “expects”, “intends”, “anticipates”, “considers”, “plans”, “estimates”, “projects” , “anticipates,” “should,” “could,” “would,” “will,” “confident,” “can,” “can,” “potential,” “possible,” “proposed,” “ongoing,” “construct,” “develop,” “opportunity,” “initiative,” “goal,” “outlook,” “optimistic,” “maintain,” “continue,” “advance,” “advance,” “aim,” “goal “, ” committed to,” or similar expressions, or when discussing our direction, priorities, strategy, goals, vision, mission, capabilities, projections, intentions or expectations.

Factors that could cause actual results and events to differ materially from those expressed or implied in any forward-looking statement include, among others, risks and uncertainties related to: decisions, investigations, regulations, issuance or revocation of permits or other authorities and other actions of (i) the US Department of Energy, the Comision Reguladora de Energia, the US Federal Energy Regulatory Commission and other governmental and regulatory bodies and (ii) the US, Mexico and states, counties, cities and other jurisdictions therein and in other countries in which we do business; the success of business development efforts, construction projects and acquisitions and sales, including risks in (i) being able to make a final investment decision, (ii) completing construction projects or other transactions on schedule and on budget, (iii) realizing the expected benefits from any of these efforts if completed, and (iv) obtaining the consent or approval of partners or other third parties, including governmental and regulatory bodies; civil and criminal litigation, regulatory investigations, investigations, arbitrations, property disputes and other proceedings; changes in laws and regulations, including certain from Mexico laws and rules affecting licensing of energy suppliers, pricing of energy contracts, the electricity industry in general and the import, export, transportation and storage of hydrocarbons; cybersecurity threats, including by state and state-sponsored actors, ransomware attacks on our systems or the systems of third parties with whom we do business, including the power grid or other energy infrastructure, all of which have become more pronounced due to recent geopolitical events, such as the war in Ukraine; failure of foreign governments, government entities and our partners to honor their contracts and obligations; our ability to borrow money on favorable terms or otherwise and meet our debt service obligations, including (i) actions by credit rating agencies to downgrade our credit ratings or put those ratings on negative outlook and (ii) rising interest rates and inflation ; the impact on our ability to pass on increasing costs to current and future customers due to volatility in inflation, interest and foreign exchange rates and commodity prices and our ability to effectively hedge these risks; the impact of energy and climate policies, laws, regulations and disclosures, and related goals and actions of companies in our industry, including actions to reduce or eliminate reliance on natural gas and the risk of non-recovery for stranded assets; the pace of development and adoption of new technologies in the energy sector, including those designed to support the energy and climate goals of governments and private parties, and our ability to effectively incorporate them into our business; weather, natural disasters, pandemics, accidents, equipment failures, explosions, acts of terrorism, information system outages or other events that disrupt our business, damage our facilities or systems, cause the release of harmful materials, cause fires or subject us to liability for damages, fines and penalties, some of which may be contested or not covered by insurers or may affect our ability to obtain satisfactory levels of affordable insurance; availability of natural gas; the impact of the COVID-19 pandemic on capital projects, regulatory approvals and the execution of our operations; changes in tax and trade policies, laws and regulations, including tariffs, revisions to international trade agreements and sanctions, such as those imposed and which may be imposed in the future in connection with the war in Ukraine, which may increase our costs, reduce our competitiveness, affect our ability to do business with certain counterparties or impair our ability to resolve trade disputes; and other uncertainties, some of which are difficult to predict and beyond our control.

These risks and uncertainties are discussed further in Sempra’s filings with the US Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free of charge on the SEC’s website, www.sec.gov, and on Sempra’s website, www.sempra.com. Investors should not place undue reliance on any forward-looking statements.

Sempra Infrastructure is not the same company as San Diego Gas & Electric Company or Southern California Gas Company, and neither Sempra Infrastructure nor any of its subsidiaries is regulated by the California Public Utilities Commission.

SOURCE Sempra North American Infrastructure



[ad_2]

Source link