May 4, 2020 / 12:36 PM / a month ago

Sempra delays investment decision on its Texas LNG export plant to 2021

May 4 (Reuters) - U.S. energy company Sempra Energy said on Monday it has delayed a final investment decision (FID) to build its Port Arthur liquefied natural gas (LNG) export plant in Texas from this year to the next as the coronavirus cuts global demand for the fuel.

The company, which reported its first-quarter earnings, also said its Infraestructura Energetica Nova SAB de CV unit in Mexico would likely defer some construction capital to 2021 as a result of the COVID-19 pandemic.

“IEnova is actively monitoring the current situation but as a result of the current pandemic, it is reasonable to expect that some of the construction capital will be deferred from 2020 to 2021,” Sempra said, without specifying which projects may see the delayed spending.

Officials at Sempra were not immediately available for comment. Company executives will hold a conference call with analysts later on Monday.

In March, Sempra said it planned to make an FID in the second quarter of 2020 to build the Costa Azul LNG export plant in Baja California, Mexico - a joint project by Sempra and IEnova.

In addition to Costa Azul, IENova is also working on several other projects in Mexico. (Reporting by Scott DiSavino in New York and Arathy S Nair in Bengaluru; Editing by Ramakrishnan M.)

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