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Researched by Industrial Info Resources (Sugar Land, Texas)--Energy infrastructure company Sempra Energy (NYSE:SRE) (San Diego, California) has its hands on many active projects and isn't showing any signs of letting up. The company has established a $36 billion, five-year capital program, with most of the funds allocated to projects and infrastructure-strengthening in California, Texas and Mexico.
With its homebase in California, which has some of the most lofty environmental goals in the U.S., and a large presence in Texas, a leading destination for renewable energy developers, Sempra is firmly grounded in the decarbonization movement, with the company's goal to have net-zero emissions by 2050. The company has plans for a large green-hydrogen network in California as well as cleaner ways of producing liquefied natural gas (LNG) at its plants.
In Friday's earnings conference call with analysts, Lisa Larroque Alexander, Sempra's chief sustainability officer, said, "Across our industry, companies are adjusting their business models to meet customer demands for increasingly cleaner sources of energy. At Sempra, we think these trends play to the strength of our company and effectively create a tailwind for new and cleaner investments across our platforms."
Sempra's newly announced $36 billion, five-year capital plan (an increase of $4 billion from the 2021-25 plan) has plenty of room for greener projects and environmental goals. Subsidiary Southern California Gas (Los Angeles, California) (SoCalGas) achieved more than 4% of its deliveries with renewable natural gas (RNG) in 2021 and is on track for to meet its 20% RNG goal by 2030. Last week, the California Public Utility Commission established a renewable gas procurement standard providing a collective target for California's investor-owned gas utilities of 17.6 billion cubic feet (Bcf) of RNG by 2025 and approximately 72.8 Bcf by 2030.
The company is seeking ways to introduce carbon capture and storage at its LNG facilities and has filed an amendment with the U.S. Federal Energy Regulatory Commission (FERC) to incorporate electric drives for the proposed second-phase construction of its Cameron LNG plant in Louisiana. The plant has three operational production trains with a nameplate capacity of approximately 15 million tons per year. A fourth, 6 million-ton-per-year train has been proposed for construction, which could kick off next year with an aim for a 2027 start date. Subscribers to Industrial Info's Global Market Intelligence (GMI) Production Project Database can click here for the detailed report.
Sempra also reported that construction on its Energia Costa Azul LNG project in Baja California, Mexico--the only LNG plant in the world to receive a positive final investment decision in 2020--was progressing on time and on budget. Construction kicked off last year. Phase I construction is adding one train with a production capacity of 3.25 million metric tons per year. A second phase has been proposed, which would include two 6 million-ton-per-year trains, but this would require construction of a new pipeline, probably to receive gas from the Permian Basin. Subscribers can click here for the project report on Phase I and here for the expansion project.
Sempra reported that Oncor (Dallas, Texas), its Texas electric transmission and distribution (T&D) subsidiary, had been allocated $15 billion in the 2022-26 capital plan. Examples of Oncor T&D projects include the planned rebuild of 21 miles of transmission line between Lufkin and Nacogdoches, Texas, by replacing the 40-year-old H-frame structures with new ones, along with conductors and static wires to enhance reliability in the area. The project could kick off toward the end of this year and would take an estimated two years to complete. Subscribers to Industrial Info's Power Project Database can click here for the project report.
While most of Sempra's active projects involve its core gas and power businesses, the company sees green hydrogen as part of its future, particularly in California. SoCalGas recently announced a proposed green hydrogen infrastructure system to serve the Los Angeles Basin, called Angeles Link. In the conference call, Trevor Mihalik, Sempra's chief financial officer, said, "As contemplated, this project would be the nation's largest green hydrogen infrastructure system and would deliver green hydrogen to the country's largest manufacturing hub to help decarbonize electric generation, industrial processes, heavy-duty trucking and other sectors that are challenging to fully electrify." SoCalGas is seeking to diversify its assets as the Angeles Link would significantly decrease demand for natural gas in the L.A. Basin. According to a company website, as contemplated, the Angeles Link would deliver green hydrogen in an amount equivalent to almost 25% of the natural gas SoCalGas delivers today.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
With its homebase in California, which has some of the most lofty environmental goals in the U.S., and a large presence in Texas, a leading destination for renewable energy developers, Sempra is firmly grounded in the decarbonization movement, with the company's goal to have net-zero emissions by 2050. The company has plans for a large green-hydrogen network in California as well as cleaner ways of producing liquefied natural gas (LNG) at its plants.
In Friday's earnings conference call with analysts, Lisa Larroque Alexander, Sempra's chief sustainability officer, said, "Across our industry, companies are adjusting their business models to meet customer demands for increasingly cleaner sources of energy. At Sempra, we think these trends play to the strength of our company and effectively create a tailwind for new and cleaner investments across our platforms."
Sempra's newly announced $36 billion, five-year capital plan (an increase of $4 billion from the 2021-25 plan) has plenty of room for greener projects and environmental goals. Subsidiary Southern California Gas (Los Angeles, California) (SoCalGas) achieved more than 4% of its deliveries with renewable natural gas (RNG) in 2021 and is on track for to meet its 20% RNG goal by 2030. Last week, the California Public Utility Commission established a renewable gas procurement standard providing a collective target for California's investor-owned gas utilities of 17.6 billion cubic feet (Bcf) of RNG by 2025 and approximately 72.8 Bcf by 2030.
The company is seeking ways to introduce carbon capture and storage at its LNG facilities and has filed an amendment with the U.S. Federal Energy Regulatory Commission (FERC) to incorporate electric drives for the proposed second-phase construction of its Cameron LNG plant in Louisiana. The plant has three operational production trains with a nameplate capacity of approximately 15 million tons per year. A fourth, 6 million-ton-per-year train has been proposed for construction, which could kick off next year with an aim for a 2027 start date. Subscribers to Industrial Info's Global Market Intelligence (GMI) Production Project Database can click here for the detailed report.
Sempra also reported that construction on its Energia Costa Azul LNG project in Baja California, Mexico--the only LNG plant in the world to receive a positive final investment decision in 2020--was progressing on time and on budget. Construction kicked off last year. Phase I construction is adding one train with a production capacity of 3.25 million metric tons per year. A second phase has been proposed, which would include two 6 million-ton-per-year trains, but this would require construction of a new pipeline, probably to receive gas from the Permian Basin. Subscribers can click here for the project report on Phase I and here for the expansion project.
Sempra reported that Oncor (Dallas, Texas), its Texas electric transmission and distribution (T&D) subsidiary, had been allocated $15 billion in the 2022-26 capital plan. Examples of Oncor T&D projects include the planned rebuild of 21 miles of transmission line between Lufkin and Nacogdoches, Texas, by replacing the 40-year-old H-frame structures with new ones, along with conductors and static wires to enhance reliability in the area. The project could kick off toward the end of this year and would take an estimated two years to complete. Subscribers to Industrial Info's Power Project Database can click here for the project report.
While most of Sempra's active projects involve its core gas and power businesses, the company sees green hydrogen as part of its future, particularly in California. SoCalGas recently announced a proposed green hydrogen infrastructure system to serve the Los Angeles Basin, called Angeles Link. In the conference call, Trevor Mihalik, Sempra's chief financial officer, said, "As contemplated, this project would be the nation's largest green hydrogen infrastructure system and would deliver green hydrogen to the country's largest manufacturing hub to help decarbonize electric generation, industrial processes, heavy-duty trucking and other sectors that are challenging to fully electrify." SoCalGas is seeking to diversify its assets as the Angeles Link would significantly decrease demand for natural gas in the L.A. Basin. According to a company website, as contemplated, the Angeles Link would deliver green hydrogen in an amount equivalent to almost 25% of the natural gas SoCalGas delivers today.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
