French oil and gas firm TotalEnergies has signed two Memorandums of Understanding (MoU) with U.S. energy infrastructure and utility owner Sempra, expanding their strategic alliance in the North America region.
They have signed one MoU for the mid-scale Vista Pacífico LNG export project on Mexico's west coast and another MoU related to renewable energy projects in North America.
Specifically, the MoU will allow Sempra to acquire 30% of TotalEnergies’ equity interest in an offshore wind project off the coast of California and TotalEnergies to acquire 30% of Sempra’s equity interest in onshore renewable projects along the US-Mexico border.
The Vista Pacífico LNG project is strategically located to facilitate convenient export to high-demand markets, like South America and Asia. The MoU will enable TotalEnergies to offtake a third of the future LNG production from this project and become a shareholder with a 16.6% stake holding in it.
Exports of U.S. LNG grew at a record pace last year, including an average of 9.6 billion cubic feet per day during the first half of the year, according to U.S. Energy Information Administration statistics. Natural gas is transported by pipeline to liquefaction facilities where it is chilled to more than 200 degrees below zero Fahrenheit to make it liquid and stable for shipping.
Sempra has signed a non-binding agreement with Mexico’s state-owned Comisión Federal de Electricidad to explore joint development of the Vista Pacífico LNG project.
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TotalEnergies’ Chairman and CEO Patrick Pouyanné said he was pleased with the expansion of the partnership with Sempra.
“This new step in our collaboration allow us to go further in our ambition to offer our customers sustainable, affordable and reliable energy, in line with our transformation into a global multi-energy company,” Pouyanné added.
He also said that TotalEnergies has become the leading exporter of U.S. LNG and has developed a pipeline of 4 GW of solar projects and 3 GW of offshore wind projects, which are under development in the country.
TotalEnergies and Sempra are already working on a 12 Mt/y LNG export facility Cameron LNG in Hackberry, Louisiana (pictured) and a 3 Mt/y liquefaction facility ECA LNG in Baja California, Mexico.
