Sempra Infrastructure, a subsidiary of Sempra, and TotalEnergies are expanding a North American alliance covering LNG and renewable development projects through two non-binding memoranda of understanding (MOU).
One pertains to Sempra Infrastructure's proposed Vista Pacífico LNG project in Mexico. The second covers a proposed offshore wind project in California under development by TotalEnergies.
Vista
The MOU for Vista Pacífico LNG contemplates TotalEnergies potentially contracting for about one-third of the long-term export production of the LNG plant under development on Mexico's West Coast, as well as TotalEnergies' potential participation as a minority equity investor.
The proposed Vista Pacífico LNG project is expected to be a mid-scale facility that would source lower-cost natural gas from the Permian Basin for export to high-demand markets, including Asia, Europe and South America, and to satisfy natural gas demand requirements in other regions of Mexico.
In January, Sempra Infrastructure signed a non-binding agreement with Comisión Federal de Electricidad, Mexico's state-owned electric company, for the potential joint development of the Vista Pacífico LNG project (OGJ Online, Feb. 2, 2022).
California, Mexico
The second provides a framework for broader cooperation in the development of North American renewable energy projects, including the potential acquisition by Sempra Infrastructure of a target of 30% of TotalEnergies' equity interest in a proposed offshore wind project, which would result in 24% of the project, in preparation for an upcoming auction off the coast of California.
The MOU also provides framework for TotalEnergies' potential acquisition of equity participation targeting 30% in certain Sempra Infrastructure renewable and energy storage development projects in Northern Mexico.
Sempra Infrastructure and TotalEnergies are already participants in two joint venture projects: Cameron LNG, a 12-million tonne/year (tpy) LNG export terminal in Hackberry, La., and Energia Costa Azul LNG Phase 1, a 3-million tpy liquefaction plant under construction in Baja California, Mexico.
