Sempra Energy has awarded the engineering, procurement, construction and commissioning (EPC) contract for the Energia Costa Azul (ECA) liquefaction project under development in Baja California, Mexico, to TechnipFMC and Kiewit.
The announcement was made yesterday by Sempra LNG & Midstream, a unit of Sempra Energy.
Working together as a TechnipFMC-Kiewit partnership, the two companies will perform the engineering, planning and related activities necessary to prepare, negotiate and finalise a lump-sum EPC contract for the project, leveraging their 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,” added 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, Louisiana, 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.