TotalEnergies to become shareholder in Sempra’s Vista Pacifico LNG
French energy major TotalEnergies has signed a deal with U.S. LNG infrastructure company Sempra to offtake one-third of the future Vista Pacifico LNG production and become a shareholder in the project.
TotalEnergies said in a statement it is expanding its North American strategic alliance with Sempra.
Specifically, the companies signed two memorandums of understanding (MoU); one for the Vista Pacífico LNG export project in Mexico and the other for the co-development of several renewables projects.
TotalEnergies and Sempra are already partners in the Cameron LNG project in Louisiana. They also work together on the Energia Costa Azul LNG liquefaction facility under construction in Baja California, Mexico.
The Vista Pacífico LNG project will be a mid-scale facility on Mexico’s west coast. In February, Sempra signed a deal with Mexico’s Federal Electricity Commission to jointly develop the terminal in Topolobampo, Sinaloa.
The new MoU provides for TotalEnergies to offtake one-third of its future LNG production. Moreover, it is to become a shareholder in the project with a minimum stake of 16.6 per cent.
TotalEnergies and Sempra in renewables projects
Under the second MoU, the parties will co-develop several renewable energy projects in North America.
These include Sempra’s potential acquisition of 30 per cent of TotalEnergies’ equity interest in an offshore wind project off the coast of California. The project is currently preparing for an upcoming auction.
In addition, the MoU covers TotalEnergies’ potential acquisition of 30 per cent of Sempra’s equity interest in certain onshore renewable projects. These projects are under development along the border of Mexico and the U.S.
“We are pleased to further strengthen our partnership with Sempra in North America in LNG and to extend it to renewables,” said Patrick Pouyanné, CEO of TotalEnergies.
He added that over the past years, TotalEnergies has become the leading exporter of U.S. LNG. It also built up a pipeline of 4 gigawatts of solar projects and 3 gigawatts of offshore wind projects currently under development in the U.S.
“This new step in our collaboration allows us to go further in our ambition to offer our customers sustainable, affordable and reliable energy.”