February 20 2015 [OPIS] - Petroleos Mexicanos today signed a Memorandum of Understanding (MOU) with Sempra LNG and IEnova, Sempra's Mexican pipeline unit, for cooperation and coordination in developing a natural gas liquefaction project at the site of Sempra LNG's Costa Azul LNG regasification terminal 15 miles north of Ensenada on Baja California and 45 miles south of Tijuana.
A Pemex spokesman underlined that, if this project goes forward, it will be the first LNG liquefaction facility in Mexico. OPIS notes that the country presently has three LNG regas terminals. The first went into service at Altamira, near Tampico, in 2006, Costa Azul started up in 2008, and Manzanillo, south of Guadalajara, began operations in 2012.
The Costa Azul MOU defines the basis for the parties to explore PEMEX’s participation in the potential Energia Costa Azul liquefaction project, including joining efforts on its development, and structuring agreements that
would allow opportunities for PEMEX to become a customer, natural gas supplier and investor.
“This is an important first step in working with PEMEX on the development of liquefaction facilities at Energia Costa Azul,” said Mark A. Snell, president of Sempra Energy.
In the various announcements issued today by the participants, none of them say directly that the project represents the turnaround of Costa Azul from an LNG receipt terminal to an LNG production facility. But OPIS notes that Sempra LNG has deep experience with just such a conversion, which they are carrying out at their Cameron LNG facility south of Lake Charles, La.
Just as a string of LNG facilities on the Louisiana coast are in the process of being converted from regas terminals to LNG liquefaction plants for LNG exports, it appears that the signatories to today’s MOU are contemplating just such a repurposing for Costa Azul.
