TechnipFMC And Kiewit Selected As EPC Contractors For Energía Costa Azul LNG Export Project
Jun 25, 2018
SAN DIEGO, June 25, 2018 /PRNewswire/ -- Sempra LNG & Midstream, a unit of Sempra Energy (NYSE: SRE), today announced that a TechnipFMC and Kiewit partnership has been selected as the engineering, procurement, construction and commissioning (EPC) contractor for the Energía Costa Azul (ECA) liquefaction project under development in Baja California, Mexico.
The TechnipFMC-Kiewit partnership will perform the engineering, planning and related activities necessary to prepare, negotiate and finalize a lump-sum EPC contract for the project, leveraging the two companies' extensive experience on liquefied natural gas (LNG) projects worldwide.
"The ECA liquefaction project is one of three North American LNG export projects we are developing -- two on the Gulf Coast and one in the Pacific Basin -- to help meet global demand for LNG," said Joseph A. Householder, president and chief operating officer of Sempra Energy. "This project is an exciting part of our LNG growth strategy and geographically positioned to serve Asian natural gas markets."
Permitted to be built adjacent to the existing ECA regasification facility, the liquefaction project is being developed by Sempra Energy to provide customers with direct access to west coast LNG supplies.
"Having two highly qualified construction companies, TechnipFMC and Kiewit, with international liquefaction experience will contribute to the project's success," said Octavio M.C. Simoes, president of Sempra LNG & Midstream. "ECA liquefaction will help us achieve our LNG development objectives of having a world-class LNG export terminal on the west coast of North America."
Development of the ECA liquefaction project is contingent upon: obtaining customer commitments; completing the required commercial agreements (including a definitive EPC contract); securing all necessary permits and approvals; obtaining financing and incentives; reaching a final investment decision; and other factors associated with the investment and the size, phasing and schedule of the development.
In addition to the ECA liquefaction development, Sempra LNG & Midstream is developing a three-train, 14-million-tonnes-per-annum (Mtpa) liquefaction facility at Cameron LNG in Hackberry, La., that is currently in construction. Last week, Sempra LNG & Midstream announced that Bechtel was selected as the EPC contractor for a third project, Port Arthur LNG, a two-train 11-Mtpa liquefaction facility in Port Arthur, Texas. Completion of these projects is subject to a number of risks and uncertainties.
Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2017 revenues of more than $11 billion. Sempra Energy is the utility holding company with the largest U.S. customer base. The Sempra Energy companies' approximately 20,000 employees serve more than 40 million consumers worldwide.
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Sempra South American Utilities, Sempra Infrastructure, Sempra LNG & Midstream, Sempra Renewables, Sempra Mexico, Sempra Texas Utility, Oncor Electric Delivery Company LLC (Oncor) and Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) are not the same companies as the California utilities, San Diego Gas & Electric Company (SDG&E) or Southern California Gas Company (SoCalGas), and Sempra South American Utilities, Sempra Infrastructure, Sempra LNG & Midstream, Sempra Renewables, Sempra Mexico, Sempra Texas Utility, Oncor and IEnova are not regulated by the California Public Utilities Commission.
SOURCE Sempra LNG & Midstream
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