Sempra Energy reported that it is continuing to work with the Mexican government to get a 20-year export permit for its proposed Costa Azul liquefied natural gas (LNG) export plant in Mexico’s Baja California, Kallanish Energy reports.
Sempra Energy said it plans to make a final investment decision to build the LNG plant in 2020, it said in Wednesday’s earnings report.
LNF expansions and construction have been delayed by LNG companies around the world as LNG global demand has collapsed due to the coronavirus pandemic.
Sempra and its subsidiary Infraestructura Energetica Nova SA de CV (iEnova) plan to build the export facility at the existing Costa Azul LNG import plant, which entered service in 2008, Reuters reported.
Phase 1 calls for facilities to produce about 2.5 million tonnes of LNG per year.
The plant could be expanded with future LNG shipments to Asia.
The Mexican plan is one of five LNG facilities being developed in North America by Sempra Energy. That includes Cameron in Louisiana and Port Arthur in Texas.
Sempra Energy reported earnings of $2.239 billion or $7,61 per share, compared to 2Q 2019 earnings of $354 million or $1.26 per share.
It reported adjusted earnings of $485 million or $1.65 per share. That compares to $309 million or $1.10 per share.
The company said it intends to invest $32 billion from 2020 to 2024 on its utilities in Texas and California.
It also reported that its recent divestments of its South American businesses and other divestments brought in about $8.3 billion.
That money will be used to boost liquidity, strengthen the balance sheet, support capital spending and return value to shareholders, the company said.
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