Sempra Awards EPC Contracts on Liquefaction Plant, One of its $7.4 Billion in Mexican Projects

Researched by Industrial Info Resources (Sugar Land, Texas)--Sempra LNG & Midstream, a subsidiary of Sempra Energy (NYSE:SRE) (San Diego, California), recently awarded TechnipFMC (London, England) and Kiewit Corporation (Omaha, Nebraska) contracts to provide engineering, procurement and construction (EPC) services for a major liquefaction project in Mexico. Industrial Info is tracking more than $7.4 billion in active projects involving Sempra and its subsidiaries in Mexico, including the liquefaction project, related storage facilities and renewable-energy plants.

Click on the image at right to see a graph detailing Sempra's active projects in Mexico, by industry.

The $6.2 billion Energía Costa Azul (ECA) liquefaction project in Ensenada, Baja California, involves converting the existing storage and regasification terminal for liquefied natural gas (LNG) into an LNG storage and liquefaction terminal. Sempra plans to install two LNG trains that would produce 12.4 million metric tons per year. Sempra's Mexican subsidiary, Infraestructura Energética Nova S.A.B. de C.V. (IEnova), is the owner/operator of the project. For more information, see Industrial Info's project report.

Joseph A. Householder, the president and chief operating officer of Sempra, said in a press release that ECA is "geographically positioned to serve Asian natural gas markets." Sempra also is planning a $40 million terminal tank addition and a $12.5 million berth addition. The 160,000-cubic-meter cryogenic LNG storage tank will be the third at the facility. For more information, see Industrial Info's reports on the terminal tank and berth.

Sempra has a slew of other Mexican projects in other industries. Earlier this year, IEnova announced it plans to develop, build and operate the $130 million La Jovita Refined Products Terminal in Ensenada, Baja California. The terminal will receive, store and disperse liquid fuels from the La Jovita Energy Hub; IEnova also signed a long-term contract with Chevron Corporation (NYSE:CVX) (San Ramon, California) for 50% of the facility's capacity, to supply Chevron's service stations and other consumers in Baja California. The terminal is expected to have an initial storage capacity of 1 million barrels of gasoline and diesel in 30 tanks. Completion is set for the second half of 2020. For more information, see Industrial Info's project report.

"[The La Jovita facility] capitalizes on the continued build-out of infrastructure related to Mexico's energy reform by increasing fuel supply capacity in Mexico," said Jeff Martin, the chief executive officer of Sempra, in a recent earnings-related quarterly conference call. "In turn, this further helps Mexico's energy mix become more reliable and gives consumers more fuel choices."

IEnova also has three solar facilities under construction in Mexico: the $115 million Central Fotovoltaica Pima Solar Plant in Caborca, Sonora, which is expected to generate 110 megawatts (MW); the $100 million Tepezala Solar II Plant in Tepezala, Aguascalientes, which is expected to generate 100 MW; and the $50 million Rumorosa Solar Plant in Tecate, Baja California Del Norte, which is expected to generate 41 MW. The Central Fotovoltaica Pima and Rumorosa plants are expected to wrap up toward the end of this year, and the Tepezala Solar II Plant is expected to be completed in mid-2019.

Last year, IEnova signed a 20-year power-purchase agreement for the Central Fotovoltaica Pima Plant with steel manufacturer Deacero S.A. de C.V. (San Pedro Garza García, Nuevo León). For more information, see Industrial Info's reports on the Central Fotovoltaica, Rumorosa and Tepezala plants.

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