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Commodities

Sempra says Total takes stake in major Mexican LNG project

MEXICO CITY (Reuters) - French oil major Total has acquired a 16.6% stake in a liquefied natural gas (LNG) project in northern Mexico undertaken by U.S. firm Sempra Energy and its local unit Infraestructura Energetica Nova (IEnova), Sempra said on Wednesday.

The $2 billion Energia Costa Azul (ECA) LNG facility by the port of Ensenada is one of the biggest energy infrastructure projects under development in Mexico.

After months of delay, Sempra recently obtained an export permit from the government for the facility.

Under the terms of the agreement, Total will take its equity stake in phase 1 of ECA LNG. Sempra LNG and IEnova will each hold 41.7% ownership, Sempra said in a statement.

ECA LNG phase 1 is being built at an existing IEnova regasification facility. Total’s equity acquisition does not include an equity interest in the regasification plant.

Earlier this year, Total signed a 20-year sale and purchase agreement for around 1.7 million tonnes of LNG a year from the export facility, Sempra said.

Reporting by Bengaluru Newsroom; Writing by Dave Graham; Editing by Stephen Coates

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