CFE and Sempra Infrastructure expand agreements for the development of energy infrastructure in Mexico

Source: press release, 21 July 2022          

photo: Sempra
photo: Sempra

Sempra Infrastructure, a subsidiary of Sempra, and Mexico’s Federal Electricity Commission (Comisión Federal de Electricidad, CFE), announced several agreements to advance the joint development of critical energy infrastructure projects in Mexico, including the rerouting of the Guaymas-El Oro pipeline in Sonora, the proposed Vista Pacífico LNG project in Topolobampo, Sinaloa, and the potential development of a liquefied natural gas (LNG) terminal in Salina Cruz, Oaxaca.

These new agreements establish the framework for a joint venture between the companies to ultimately enable the restoration of service provided by the Guaymas-El Oro pipeline.

These agreements also outline the path forward for the Vista Pacífico LNG terminal, including the definition of the project’s configuration to advance engineering and permitting efforts.

In addition, the companies are expanding the memorandum of understanding (MoU) signed earlier this year to jointly explore the potential development of an LNG terminal in Salina Cruz, Oaxaca. This new opportunity will support the Government of Mexico’s Interoceanic Corridor in the Isthmus of Tehuantepec project, which is intended to promote economic growth and development of Mexico’s South-Southeast region.

These development projects would allow CFE to potentially optimise the use of existing natural gas pipeline systems, provide additional sources of LNG supply for isolated markets in Mexico and continue to expand LNG supplies to the global market.

The agreements reflect Sempra Infrastructure and CFE’s commitment to continue advancing energy infrastructure projects that enhance the region’s energy security, promote North America’s energy integration, and foster economic growth and social wellbeing in the region.

The agreements for the development of the Vista Pacifico LNG and the proposed LNG project in Salina Cruz are preliminary and non-binding. These development projects, together with the rerouting of the Guaymas-El Oro pipeline, remain subject to a number of commitments to be satisfied, including, as applicable, feasibility studies, reaching definitive customer, construction and partnership agreements, securing all necessary permits, obtaining financing and incentives, receiving respective board approval, and reaching a final investment decision.