Construction of Sempra Infrastructure’s Energía Costa Azul (ECA) LNG Phase 1 project in Mexico has faced some setbacks, according to the San Diego-based company. The project, which aims to export 3 million metric tons/year (mmty) of U.S. natural gas, will now delay its commercial operations until the spring of 2026 due to labor and productivity challenges.
During a recent second-quarter earnings call, Sempra management announced the delay in the project timeline. While the construction is currently at 85% completion, the company cited issues with labor retention and productivity as the main reasons for the delay. As a result, the plant is now expected to start producing liquefied natural gas in 2023, with full commercial operations commencing in 2026.
Despite the setbacks, Sempra remains committed to completing the project and ensuring its success in the long run. The company’s CFO, Karen Sedgwick, acknowledged the challenges faced by the contractor but expressed confidence in overcoming these obstacles and delivering a high-quality facility.
The ECA LNG Phase 1 project is located in Ensenada, Baja California, and is a crucial part of Sempra’s expansion into the LNG market in Mexico. Once operational, the facility will play a significant role in supporting the country’s energy needs and boosting its economy through exports of natural gas.
Sempra’s decision to prioritize quality and safety over rushing the project demonstrates its commitment to sustainable and responsible business practices. By addressing the issues with labor retention and productivity now, the company aims to ensure the long-term success and efficiency of the ECA LNG Phase 1 project.
Looking ahead, Sempra will continue to work closely with its contractors and partners to address any remaining challenges and bring the project to completion. With a new target timeline set for the spring of 2026, the company remains focused on delivering a world-class LNG facility that will benefit both Mexico and the U.S. in the years to come.
