Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you a link to reset your password.

  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you a link to reset password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list
LNG | Natural Gas

IEnova confident of obtaining key Mexican LNG import permit in 2020

Commodities | Energy | LNG | Natural Gas | Natural Gas (North American) | Oil | Crude Oil | Refined Products | Gasoline | Metals | Steel | Shipping | Tankers

Market Movers Americas, Sep 21-25: Flotilla of US crude heads toward China

LNG | Natural Gas | NGL

Platts LNG Alert

Capital Markets | Commodities | Electric Power | Natural Gas

Mexican Energy Conference, 24th

Electricity | Coal | Emissions | Electric Power | Renewables | Natural Gas | Oil

China's carbon neutral pledge signals turning point for fossil fuel markets

IEnova confident of obtaining key Mexican LNG import permit in 2020


IEnova says working closely with authorities

Permit to be granted for 20 years

No major issues raised by authorities

Mexico City — IEnova, the Mexican unit of California-based utility Sempra Energy, is confident it will secure a key government permit this year to make a final investment decision on its planned Energia Costa Azul LNG liquefaction project on Mexico's Pacific Coast, the company said July 23.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

The firm is working closely with the authorities as they evaluate the merits of the permit, executives said during the company's second-quarter 2020 earnings conference call.

"We are quite confident that we are going to get it before the year ends," said Carlos Ruiz Sacristan, chairman of the board.

IEnova had expected to reach an FID for Energia Costa Azul in the first quarter of the year, but the coronavirus pandemic caused government offices to shut and halt all permit processing.

"The government is still formally closed," Tania Ortiz Mena, CEO, said during the call.

IEnova, which operates storage terminals around the country, has one-year permits to export gas through pipelines to the US.

The Energia Costa Azul permit will be the country's first for the export of LNG from a terminal. It will also be the first in the country to be granted for 20 years, Alexandra Violante, investor relations officer, told S&P Global Platts after the call ended.

The gas will most likely end up in Asia and Europe. The route to Asia from the Pacific Coast is shorter than from the Gulf Coast, and avoids Panama Canal congestion and fees.

IEnova has met all the requirements and no major issues were raised by the authorities are impossible to address, Chief Financial Officer Nelly Molina said during the call.

IEnova is also making progress on other requirements for reaching an FID this year. During Q2, IEnova executed sale-and-purchase agreements with Total and Mitsui that together with the import permit are the key to reaching an FID, Ortiz Mena said.

IEnova had signed heads of agreement with Total, Mitsui and Tokyo Gas for the full export capacity of Phase I of the project, which is expected to produce 2.4 million mt/year of LNG, or nearly 310 MMcf/d of gas equivalent, upon entering service.

Ruiz Sacristan mentioned during the call that one of the offtakers had expressed interest in "acquiring equity" in the project, without providing details. Violante declined to comment on the party's identity.

Sempra has sold equity stakes at other projects to finance their construction. In Louisiana, Sempra has created a joint venture with Total, Mitsui and Japan LNG Investment to build an LNG terminal.

That is also how the company plans to support construction of an LNG terminal in Port Arthur, Texas.