French energy major TotalEnergies and U.S. LNG infrastructure company Sempra have expanded their North American strategic alliance with the signing of two Memorandums of Understanding (MoUs).
TotalEnergies said that one of the agreements was for the Vista Pacífico LNG export project in Mexico while the other was for the co-development of several onshore and offshore renewables projects.
The Vista Pacífico LNG project is planned to be a mid-scale facility on Mexico’s west coast. According to the French company, it is well-situated for exporting to high-demand markets such as Asia and South America.
Sempra signed a non-binding agreement with Comisión Federal de Electricidad, Mexico’s state-owned electric company, for the potential joint development of this project.
The MoU signed with Sempra provides for TotalEnergies to offtake one-third of its future LNG production, and to become a shareholder in the project with a minimum stake of 16.6 percent.
The second MoU provides for the co-development of several renewable energy projects in North America, including Sempra’s potential acquisition of 30 percent of TotalEnergies’ equity interest in an offshore wind project off the coast of California that is preparing for an upcoming auction and TotalEnergies’ potential acquisition of 30 percent of Sempra’s equity interest in certain onshore renewable projects under development along the Mexico-U.S. border.
“We are pleased to further strengthen our partnership with Sempra in North America in LNG and to extend it to renewables. Over the past years, TotalEnergies has become the leading exporter of U.S. LNG and has built up a pipeline of 4 GW of solar projects and 3 GW of offshore wind projects currently under development in the U.S.” said Patrick Pouyanné, Chairman and CEO of TotalEnergies.
“This new step in our collaboration allows us to go further in our ambition to offer our customers sustainable, affordable and reliable energy, in line with our transformation into a global multi-energy company,” he added.
TotalEnergies and Sempra are already partners in Cameron LNG, a 12 Mtpa LNG export facility operating in Louisiana, and in ECA LNG, an approximately 3 Mtpa liquefaction facility under construction in Mexico.