LNG tanker arrives at Mexico’s Energia Costa Azul terminal as first export nears

A ballast LNG tanker arrived at Sempra Infrastructure's Energia Costa Azul terminal July 6 as the developer prepared to export the first cargo from the project on Mexico's Pacific Coast, S&P Global Commodities at Sea data showed.

The vessel, TotalEnergies' Pacific Success, moored at the ECA terminal in the morning local time, after traveling across the Pacific from a port in South Korea.

The single-train facility began producing LNG in early June, opening a new source of supply on the Pacific Basin as global LNG spot prices remain elevated amid the war in the Middle East. The $2 billion project in Baja California, Mexico, will be able to produce about 3.25 million mt/year when fully online.

The project has 20-year offtake deals with TotalEnergies and Japan's Mitsui for 1.7 million mt/year and 800,000 mt/year, respectively.

Sempra and TotalEnergies did not immediately provide comment July 6.

Sempra Infrastructure said after achieving first LNG production that it expected to reach substantial completion this summer and begin deliveries under long-term sale and purchase agreements shortly thereafter. TotalEnergies in February said it expects to start lifting LNG cargoes from ECA in the third quarter, which began July 1.

The project sources feedgas from the US. Deliveries ramped up in June following the start of LNG production, with flows topping 400 million cubic feet/day by the end of the month before declining in recent days, S&P Global Energy CERA data showed.

In addition to ECA, Sempra Infrastructure already operates the 13.5 million mt/year Cameron LNG project in Louisiana. It is also building the 26 million mt/year Port Arthur LNG export terminal in Texas, which is expected to start operations of its first liquefaction train in 2027.

ECA is second LNG export project to come online in Mexico and the first on its West Coast, after the startup of New Fortress Energy's Altamira LNG terminal in 2024 in the Gulf of Mexico.

Global LNG spot prices remain volatile as the Middle east conflict continues to constrain transits of the Strait of Hormuz, a key passageway for about 20% of global supply.

Platts, part of S&P Global Energy, assessed the August JKM benchmark price reflecting LNG delivered to Northeast Asia at $16.603/million British thermal units July 6, an increase of about 8 cents/MMBtu from the previous assessment and still about 55% higher than prewar levels.