French firm TotalEnergies has agreed to collaborate with a unit of US-based Sempra Energy on liquefied natural gas (LNG) exports to help reduce Europe’s reliance on Russian energy.
The firms have signed two memorandums of understanding (MoU), including one for the Vista Pacífico LNG export project in Mexico, and the other for the joint development of renewables projects.
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Planned to be built on Mexico’s west coast, the Vista Pacífico LNG project will be well-situated for exporting to markets such as Asia and South America.
A non-binding agreement has also been signed by Sempra with Mexico’s state-owned electric company, Comisión Federal de Electricidad, for the potential joint development of the proposed LNG project.
The MoU proposes that TotalEnergies offtake one-third of Sempra’s future LNG production from the project and to become a shareholder, with a minimum stake of 16.6%.
Under the second MoU, the two firms will co-develop several renewable energy projects in North America
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By GlobalDataIt outlines the potential acquisition of a 30% stake by Sempra in an offshore wind project, off the coast of California, from TotalEnergie. The project is being prepared for an upcoming auction.
The MoU also outlines the potential acquisition of a 30% stake by TotalEnergies in certain onshore renewable projects, along the Mexico-US border, from Sempra. These projects are under the development phase.
TotalEnergies chairman and CEO Patrick Pouyanné said: “We are pleased to further strengthen our partnership with Sempra in North America in LNG, and to extend it to renewables.
“Over the past years, TotalEnergies has become the leading exporter of US LNG and has built up a pipeline of 4GW of solar projects, and 3GW of offshore wind projects, currently under development in the US.
“This new step in our collaboration allows us to go further in our ambition to offer our customers sustainable, affordable, and reliable energy, in line with our transformation into a global multi-energy company.”
TotalEnergies and Sempra are currently partners in the Cameron LNG export facility in Hackberry, Louisiana, and the ECA LNG liquefaction facility, which is under construction in Baja California, Mexico.
