TotalEnergies and Sempra are expanding their North American strategic alliance by signing two memorandums of understanding: one for the Vista Pacífico LNG export project in Mexico and the other for the co-development of several onshore and offshore renewables projects, the companies announced in a press release on March 31.
"Over the past years, TotalEnergies has become the leading exporter of U.S. LNG and has built up a pipeline of 4 GW of solar projects and 3 GW of offshore wind projects currently under development in the U.S.,” Patrick Pouyanné, chairman and CEO of TotalEnergies, said in the press release. “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.”
The Vista Pacífico LNG project is planned to be a mid-scale facility on Mexico’s west coast, well-situated for exporting to high-demand markets such as Asia and South America. Sempra signed a non-binding agreement with Comisión Federal de Electricidad, Mexico’s state-owned electric company, for the potential joint development of this project. The memorandum allows TotalEnergies to offtake one-third of its future LNG production and to become a shareholder in the project with a minimum stake of 16.6%.
The second memorandum provides for the co-development of several renewable energy projects in North America, including Sempra’s potential acquisition of 30% of TotalEnergies’ equity interest in an offshore wind project off the coast of California that is preparing for an upcoming auction, as well as TotalEnergies’ potential acquisition of 30% of Sempra’s equity interest in certain onshore renewable projects under development along the Mexico-U.S. border.
The two companies are already partners in Cameron LNG, a 12 mt/year LNG export facility operating in Hackberry, Louisiana, and in ECA LNG, an approximately 3 mt/year liquefaction facility under construction in Baja California, Mexico.
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