PARIS, July 9 — French oil company TotalEnergies has announced the delivery of the first liquefied natural gas (LNG) shipment from the Energia Costa Azul plant in Mexico, which is headed to Asia. However, the plant is not yet fully operational.
The facility has an export capacity of 3.25 million tons per year and is operated by Sempra. TotalEnergies owns a 16.5% share and will purchase 1.7 million tons of LNG annually for 20 years once it starts commercial operations this fall. During the initial phase, TotalEnergies will be the only buyer of LNG shipments.
Global energy markets have been stressed by a prolonged stop in oil and LNG shipments through the Strait of Hormuz caused by the ongoing conflict involving the U.S. and Israel against Iran. Smaller Asian nations are particularly affected due to limited domestic LNG storage capacity.
Both Sempra and TotalEnergies highlighted that the Mexican plant has a strategic advantage because it offers the shortest sea route for U.S. LNG to Asia, unlike facilities on the Atlantic Gulf Coast, which typically use the Panama Canal for shipping.
“In an era of growing uncertainty in the global LNG market, we are thrilled to start providing a new and dependable source of natural gas from North America's Pacific Coast to customers worldwide,” stated Justin Bird, CEO of Sempra Infrastructure.
Energia Costa Azul is the first LNG export plant located on Mexico's Pacific Coast, sourcing gas from Texas and New Mexico.