Costa Azul Exports First LNG Cargo from Mexico's Pacific Coast to South Korea

Sempra Infrastructure's Energía Costa Azul (ECA) LNG project exported its first liquefied natural gas (LNG) cargo on July 7, 2026, from Ensenada, Baja California, bound for South Korea, TotalEnergies announced on July 9. It is the first LNG export terminal on Mexico's Pacific coast and the country's second overall.

The startup comes as Asian buyers seek to diversify their gas supply sources. Approximately 20% of global LNG trade transited the Strait of Hormuz in 2024, according to the U.S. Energy Information Administration (EIA), making any new route that bypasses that chokepoint strategically significant. Costa Azul offers direct access to Asian markets without crossing the Panama Canal. With this terminal, Mexico now holds two export coastlines: the Gulf of Mexico, where New Fortress Energy completed Mexico's first LNG export in 2024 from Altamira, and now the Pacific.

ECA LNG required an investment of approximately $2 billion and has a capacity of 3.25 million tonnes per annum (MTPA) in its first phase. Sempra Infrastructure holds an 83.4% stake in the project and TotalEnergies the remaining 16.6%. The terminal receives natural gas from the U.S. Permian Basin via cross-border pipelines. TotalEnergies acts as exclusive offtaker during the startup phase under a 20-year contract for 1.7 MTPA, while Japan's Mitsui & Co. holds an agreement for 800,000 tonnes per year. LNG production began in early June 2026, after flaring activity was detected at the plant on May 24, according to Wood Mackenzie. Sempra expects to reach substantial completion in summer 2026 and begin commercial operations shortly thereafter.

With Costa Azul operational, Mexico is positioning itself as a bi-regional LNG exporter with Atlantic and Pacific routes. The next milestone is the start of deliveries under the long-term contracts with TotalEnergies and Mitsui, expected in the second half of 2026. A Phase 2 expansion of approximately 12 MTPA remains under development, pending a final investment decision by Sempra.

This article was drafted with artificial intelligence assistance from verified sources and reviewed by a human editor before publication.