This week, Sempra Infrastructure, the North American energy infrastructure subsidiary of listed energy and utility holding company Sempra, announced that it has signed a memorandum of understanding (MoU) with representatives of Mexico‘s Federal Electricity Commission (Comisión Federal de Electricidad, or CFE), to develop a number of key natural gas projects around the country. These include the Vista Pacifico LNG liquefaction project in Topolobampo, Sinaloa; a natural gas regasification project in La Paz, Baja California Sur, and the resumption of operations of the Guaymas–El Oro pipeline in Sonora.
The development of these projects would allow CFE to optimize excess natural gas and pipeline capacity from Texas to Topolobampo in order to increase its natural gas supply to its power plants in Baja California Sur, to advance President Andrés Manuel López Obrador’s commitment to supply the state with low-cost electricity and lower-emission fuels, and to promote economic growth and development of the region, with a view toward strengthening CFE’s position in global LNG markets.
The agreement also addresses the return to service of the Guaymas–El Oro pipeline in Sonora through a proposed re-routing based on mutual understanding between the Yaqui community and CFE through “continued respectful dialogue.” Through this new route, CFE would be able to supply natural gas to industrial, commercial and residential markets in the Pacific Coast of Mexico, Baja California Sur, as well as the Vista Pacífico LNG facility.
According to a prepared statement issued via Sempra Infrastructure, CFE said that it contributes to strengthening the country’s energy security and reaffirms its commitment with the Mexican people, while Sempra Infrastructure agrees to continue to work to develop critical new energy infrastructure in Mexico.
Last week, Sempra Infrastructure signed a non-binding MoU with Entergy Louisiana to develop accelerated renewable energy plans across the state. The agreement provides a framework for Entergy Louisiana and Sempra Infrastructure to collaborate on developing additional options for renewable energy procurement for Sempra Infrastructure affiliated facilities, subject to the ultimate approval of the Louisiana Public Service Commission and, with respect to Cameron LNG, its joint venture partners. The MoU also provides for collaboration on the potential reduction of methane emissions upstream of Sempra Infrastructure facilities.
“Electrification of industrial processes, increasing Louisiana’s renewable and zero carbon electricity resources, and becoming a leader in the deployment of carbon sequestration, are three of the pillars that are critical to ensuring our success in a net-zero world,” said Louisiana Governor John Bel Edwards upon the recent announcement. “I applaud companies like Sempra Infrastructure and Entergy Louisiana that are working to help make this vision a reality.”