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(Bloomberg) — Sempra Infrastructure said it began producing liquefied natural gas from Mexico’s first West Coast export terminal, with plans to ultimately ship the fuel to Asia in a move that could add relief to a market hurt by tightened global supply due to the Iran war.
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The Costa Azul export plant at Ensenada in Mexico’s Baja California state has supply contracts with Sempra’s joint venture partner TotalEnergies SE, and Japanese trading firm Mitsui & Co. Ltd for a combined 2.5 million metric tons a year.
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The terminal, known as ECA LNG, is the latest in North America to start operations following the outbreak of the Middle East conflict in late February, which has disrupted one-fifth of the world’s LNG and driven up gas prices in Asia and Europe.
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The facility, initially built as a terminal to import Indonesian LNG supplies for southern California, was turned into an export plant in 2020 after Sempra’s infrastructure subsidiary made its final investment decision. The operation now gets gas from the US for eventual export to Asia, adding it to a growing list of LNG facilities tracked by US gas traders monitoring demand for LNG exports.
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The plant’s first phase is 3.25 million metric tons a year, with a second phase under development at the same location, according to Sempra Infrastructure.
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Mexico first began LNG exports in 2024 from a smaller floating LNG export project operated by New Fortress Energy Inc. located offshore of Altamira on Mexico’s Gulf Coast.
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