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TechnipFMC and Kiewit selected as EPC contractors for Energía Costa Azul LNG export project

June 25, 2018 4:02 am

SAN DIEGO, June 25, 2018 /PRNewswire/ — Sempra LNG & Midstream, a unit of Sempra Energy (NYSE: SRE), today announced that a TechnipFMC and Kiewit partnership has been selected as the engineering, procurement, construction and commissioning (EPC) contractor for the Energía Costa Azul (ECA) liquefaction project under development in Baja California, Mexico.

Sempra LNG & Midstream Logo (PRNewsfoto/Sempra LNG & Midstream)

The TechnipFMC-Kiewit partnership will perform the engineering, planning and related activities necessary to prepare, negotiate and finalize a lump-sum EPC contract for the project, leveraging the two companies’ extensive experience on liquefied natural gas (LNG) projects worldwide.

“The ECA liquefaction project is one of three North American LNG export projects we are developing — two on the Gulf Coast and one in the Pacific Basin — to help meet global demand for LNG,” said Joseph A. Householder, president and chief operating officer of Sempra Energy. “This project is an exciting part of our LNG growth strategy and geographically positioned to serve Asian natural gas markets.”

Permitted to be built adjacent to the existing ECA regasification facility, the liquefaction project is being developed by Sempra Energy to provide customers with direct access to west coast LNG supplies.

“Having two highly qualified construction companies, TechnipFMC and Kiewit, with international liquefaction experience will contribute to the project’s success,” said Octavio M.C. Simoes, president of Sempra LNG & Midstream. “ECA liquefaction will help us achieve our LNG development objectives of having a world-class LNG export terminal on the west coast of North America.”

Development of the ECA liquefaction project is contingent upon: obtaining customer commitments; completing the required commercial agreements (including a definitive EPC contract); securing all necessary permits and approvals; obtaining financing and incentives; reaching a final investment decision; and other factors associated with the investment and the size, phasing and schedule of the development.

In addition to the ECA liquefaction development, Sempra LNG & Midstream is developing a three-train, 14-million-tonnes-per-annum (Mtpa) liquefaction facility at Cameron LNG in Hackberry, La., that is currently in construction. Last week, Sempra LNG & Midstream announced that Bechtel was selected as the EPC contractor for a third project, Port Arthur LNG, a two-train 11-Mtpa liquefaction facility in Port Arthur, Texas. Completion of these projects is subject to a number of risks and uncertainties.

Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2017 revenues of more than $11 billion. Sempra Energy is the utility holding company with the largest U.S. customer base. The Sempra Energy companies’ approximately 20,000 employees serve more than 40 million consumers worldwide.

This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by words such as “believes,” “expects,” “anticipates,” “plans,” “estimates,” “projects,” “forecasts,” “contemplates,” “assumes,” “depends,” “should,” “could,” “would,” “will,” “confident,” “may,” “can,” “potential,” “possible,” “proposed,” “target,” “pursue,” “outlook,” “maintain,” or similar expressions or discussions of guidance, strategies, plans, goals, opportunities, projections, initiatives, objectives or intentions. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Future results may differ materially from those expressed in the forward-looking statements.

Factors, among others, that could cause actual results and future actions to differ materially from those described in any forward-looking statements include risks and uncertainties relating to: actions and the timing of actions, including decisions, new regulations, and issuances of permits and other authorizations by the U.S. Department of Energy, Federal Energy Regulatory Commission, U.S. Environmental Protection Agency, Pipeline and Hazardous Materials Safety Administration, states, cities and counties, and other regulatory and governmental bodies in the United States and other countries in which we operate; the timing and success of business development efforts and construction projects, including risks in obtaining or maintaining permits and other authorizations on a timely basis, risks in completing construction projects on schedule and on budget, and risks in obtaining the consent and participation of partners and counterparties; the availability of natural gas and liquefied natural gas, and natural gas pipeline and storage capacity; equipment failures; changes in energy markets; volatility in commodity prices; moves to reduce or eliminate reliance on natural gas; risks posed by actions of third parties who control the operations of our investments, and risks that our partners or counterparties will be unable or unwilling to fulfill their contractual commitments; weather conditions, natural disasters, accidents, equipment failures, computer system outages, explosions, terrorist attacks and other events that disrupt our operations, damage our facilities and systems, cause the release of greenhouse gases and harmful emissions, and subject us to third-party liability for property damage or personal injuries, fines and penalties, some of which may not be covered by insurance (including costs in excess of applicable policy limits) or may be disputed by insurers; cybersecurity threats to storage and pipeline infrastructure, the information and systems used to operate our businesses; the impact of recent federal tax reform and uncertainty as to how it may be applied, and our ability to mitigate adverse impacts; changes in foreign and domestic trade policies and laws, including border tariffs, revisions to international trade agreements, such as the North American Free Trade Agreement, that make us less competitive or impair our ability to resolve trade disputes; and other uncertainties, some of which may be difficult to predict and are beyond our control.

These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the Securities and Exchange Commission. These reports are available through the EDGAR system free-of-charge on the SEC’s website, www.sec.gov, and on Sempra Energy’s website at www.sempra.com. Investors should not rely unduly on any forward-looking statements. These forward-looking statements speak only as of the date hereof and Sempra Energy or its subsidiaries undertake no obligation to update or revise these forecasts or projections or other forward-looking statements, whether as a result of new information, future events or otherwise.

Sempra South American Utilities, Sempra Infrastructure, Sempra LNG & Midstream, Sempra Renewables, Sempra Mexico, Sempra Texas Utility, Oncor Electric Delivery Company LLC (Oncor) and Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) are not the same companies as the California utilities, San Diego Gas & Electric Company (SDG&E) or Southern California Gas Company (SoCalGas), and Sempra South American Utilities, Sempra Infrastructure, Sempra LNG & Midstream, Sempra Renewables, Sempra Mexico, Sempra Texas Utility, Oncor and IEnova are not regulated by the California Public Utilities Commission.

SOURCE Sempra LNG & Midstream

For further information: Media Contact: Paty Ortega Mitchell, Sempra LNG & Midstream, 877-855-7887, press@sempraglobal.com; or Financial Contact: Patrick Billings, Sempra Energy, 877-736-7727, investor@sempra.com