Comprehensive Energy Data Intelligence
Information About Energy Companies, Their Assets, Market Deals, Industry Documents and More...
Pivot to the South: LNG Plants Under Development by Sempra Energy in Louisiana and Mexico
11/18/2021
Sempra Energy, one of the key U.S. gas exporters, announced earlier in the month that it will continue to build liquefied natural gas (LNG) export plants in Louisiana and Mexico, while also continuing to develop Phase 1 of the Costa Azul LNG export plant in Mexico.
At the company's earnings call, Justin Bird, CEO of Sempra Infrastructure, assured that Costa Azul would produce its first LNG by the end of 2024. After completion, It is expected that Costa Azul will produce approximately 3.3 million tonnes of LNG per annum.
In addition, Sempra would develop the 4.0-mmtpa Vista Pacifico LNG export facility located next to the company's Terminal for Refined Products in Topolobampo.
A slated pipeline connecting Vista Pacifico to two existing grids would simultaneously provide gas from the Permian basin in Texas and New Mexico to Asian markets that are seeing a rapid increase in LNG demand.
Vista Pacifico is being built in conjunction with the Energia Costa Azul (ECA) LNG project currently under construction in Baja California, for which the company has been awarded permits by the U.S. Energy Department to export to countries with an FTA, approval for non-FTA countries is expected in the coming months.
A mid-size LNG facility, Vista Pacifico would be supplied with lower-cost natural gas from the Permian Basin to export to high-demand Asian markets. Business operations associated with it will fall under the Sempra Infrastructure business platform.
Sempra Energy officials also assured that they will continue to be focused on putting together a roughly 6- million ton-per-annum fourth train at Cameron LNG, as well as optimizing operation at the 15- million ton-per-annum, three-train facility in Louisiana.
It was mentioned that both the Vista Pacifico project and the Cameron expansion might be sanctioned before the Port Arthur LNG project in Texas.
With regards to LNG-related inquiries from customers, the company sees a real increase in requests directed not only from Asia but from Europe and South America as well. In line with this, Sempra's long-term LNG development forecast suggests that the demand for LNG will grow between mid-to-high single digits.
Once marketing begins, Sempra's management expects Vista Pacifico to be oversubscribed.
Additionally, according to the company's analytics, there's a tremendous amount of recognition about the role of natural gas and specifically, LNG in Europe at the moment. And there's certainly a new risk premium being assigned to pipeline gas. This sentiment also plays a favorable role in the company's outlook.
In particular, October saw prices for natural gas in Europe and Asia reach record highs for the first time in a while. Delays in pipeline gas flowing from Russia is one of the reasons for such hasty change among the EU-nations politics as well as the reason behind boosted gas fees, as cited by the company's CEO.
Therefore Sempra Energy's comfortable position is a direct result of good market decisions, given that the company's capacity to deliver energy directly into Europe and Asia edges out most of its direct competitors in respective regions.
If you are looking for more information about energy companies, their assets, and energy deals, please, contact our sales office mapping@hartenergy.com, Tel. 619-349-4970 or SCHEDULE A DEMO to learn how Rextag can help you leverage energy data for your business.
13 years is not long enough: Glencore and Cheniere Sign Long-Term LNG Deal
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/Cheniere_Energy_Sinochem_Cheniere_Marketing_Glencore.png)
Texas Cheniere and Swiss Glencore had entered into a free-on-board agreement for approximately 0.8 million tonnes of LNG per annum, starting in April 2023 for 13 consecutive years. This SPA demonstrates the commercial momentum Cheniere has been enjoying and marks an important milestone, as the company lays the groundwork for a final investment decision on Corpus Christi Stage 3, which is expected to occur next year.
SM Energy Acquires 20,000 Acres in Texas for $90.6M
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/171Blog_SM Energy Buys 20,000 Acres in Dawson and north Martin Texas in Q2 2023.png)
SM Energy acquired 20,000 net acres in Dawson and north Martin counties in Texas, completing the transaction in cash. SM Energy Co., based in Denver, intends to expand on its success from the second quarter by increasing its drilling and completion activities in the coming quarter. This plan also includes preparations to develop the newly acquired land in the Midland basin. In June, the company's president and CEO, Herb Vogel, along with his team, raised their target for total oil and gas production for the second quarter to 13.9 MMboe, up from 13.4 MMboe. They exceeded this target, reaching nearly 14.1 MMboe, with oil making up 42% of that figure. During the quarter, SM Energy drilled 17 wells, with 12 located in South Texas and five in the Midland basin. They also completed 25 wells, 17 of which were in the Midland basin.
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/184Blog_Rangeland Energy Divests Canadian Pipeline to Kingston Midstream.png)
Rangeland Energy has agreed to sell Rangeland Midstream Canada to Kingston Midstream Alberta and remains committed to future Canadian midstream investments. Texas-based Rangeland Energy, supported by financial partner EnCap Flatrock Midstream, has inked a deal to sell its Canadian subsidiary, Rangeland Midstream Canada Ltd., to Calgary's Kingston Midstream Alberta Ltd. for cash.
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/187Blog_ONEOK Completes Acquisition of Magellan Midstream.png)
The merger between ONEOK and Magellan received approval from Magellan shareholders, securing just 55% of the total votes at Magellan’s meeting on Sept. 21. ONEOK Inc. has successfully concluded the acquisition of Magellan Midstream Partners LP on Sept. 25. The deal will bring together their respective assets and expertise, resulting in a powerful entity boasting an extensive network of approximately 25,000 miles of pipelines primarily focused on transporting liquids.
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/186Blog_Viper Energy Secures $1 Billion in Permian.png)
Viper Energy's deal, comprised of cash and equity, secures an additional 2,800 net royalty acres in the Midland Basin and 1,800 in the Delaware Basin. Viper Energy Partners LP, a Diamondback Energy Inc. subsidiary, has inked a deal to acquire mineral and royalty interests in the Permian Basin. The deal, valued at around $1 billion, is with Warwick Capital Partners and GRP Energy Capital. Viper was established by Diamondback with the purpose of owning, purchasing, and capitalizing on oil and natural gas assets in North America, specifically targeting mineral and royalty interests.