Sempra LNG’s and IEnova’s proposed Energía Costa Azul (ECA) LNG export development project in Baja California, Mexico
July 09, 2020

USMCA Renews Economic Cooperation in North America

This week, U.S. President Donald Trump and Mexico President Andrés Manuel López Obrador convened in Washington, D.C. to celebrate the implementation of the United States-Mexico-Canada Agreement (USMCA) and the beginning of a new era of economic cooperation between the signatory countries.

At Sempra Energy, we believe the USMCA sets the stage for an exciting new phase of economic cooperation here in North America and the further integration of the U.S. and Mexican economies.

Sempra LNG’s and IEnova’s proposed Energía Costa Azul (ECA) export development project in Baja California, Mexico, has the potential to be the first landmark project under this new trade agreement, upon issuance of the 20-year export permit by Mexico’s Ministry of Energy.

Further, ECA would be the first liquefied natural gas export terminal to connect the abundant natural gas supplies of the U.S. western states, including Texas, Wyoming, Utah and New Mexico, to Baja California. The full project could create nearly 30,000 jobs and expand economic development and prosperity for both the U.S. and Mexico.

“One of the clear takeaways from the bilateral summit in Washington, D.C. is the recognition that this is a unique moment in time holding remarkable promise for both countries,” said Jeffrey W. Martin, chairman and chief executive officer of Sempra Energy. “The passage of the USMCA was an ambitious step and raises the importance of cross-border projects like ECA due to the project’s scale and significant benefits to both countries.”

Phase 1 of the two-phased ECA project is “shovel-ready,” with 20-year sales and purchase agreements with Mitsui & Co. Ltd, and an affiliate of Total, S.A., and a lump-sum engineering, procurement and construction contract with TechnipFMC. This first phase contemplates moving close to 400 million cubic feet of natural gas per day into Baja California with a view toward diversifying the region’s energy supplies, lowering the price of energy and supporting strategic exports to growing Asian markets.

Sempra Energy has partnered with communities in Mexico for more than 20 years to help improve their standard of living by providing jobs, access to cleaner, lower cost energy supplies, and initiatives to improve the health, environment and economic security of Mexico. Sempra subsidiary IEnova is one of the largest infrastructure companies in Mexico and is listed on the Mexican Stock Exchange. IEnova’s assets serve families and businesses all across Mexico with a view toward improving the country’s energy and economic security.

With USMCA now fully in effect, issuance of the SENER permit by Mexico’s Ministry of Energy is a critical next step to provide additional supplies of natural gas for Baja California and launch the creation of the next global energy hub, moving abundant, low-cost American natural gas across the western U.S. pipeline system to support job growth and economic expansion in Baja California, as well as a growing energy trade with Asia.

Learn more about IEnova and Sempra LNG.


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These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the U.S. Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on the company's website at www.sempra.com. Investors should not rely unduly on any forward-looking statements.

Sempra LNG, Cameron LNG, Port Arthur LNG and ECA LNG are not the same company as San Diego Gas & Electric (SDG&E) or Southern California Gas Company (SoCalGas), and Sempra LNG, Cameron LNG, Port Arthur LNG and ECA LNG are not regulated by the California Public Utilities Commission.