Sempra Energy stood out as the only company in the world that made a final investment decision in Liquefied Natural Gas (LNG) in the world in 2020.
Over the past year, low LNG and oil prices resulted in multiple Final Investment Decision (FID) postponements, with only one liquefaction project approved.
This is the Costa Azul project, 2.5 million tons per year (mtpa) of Sempra Energy in Mexico, according to a report from the Australian Government.
At the end of 2020, global LNG capacity was estimated at around 450 mtpa, with another 125 mtpa of capacity under construction or authorized for development.
However, less than 10 mtpa of new capacity is expected to come online in 2021.
Also, according to the Australian government, there is around 900 mtpy of proposed LNG capacity in the pre-FID stage, although much of this is unlikely to continue.
At the same time, LNG capacity is projected to increase later in the decade, mainly as a result of new projects in Qatar and Russia.
This growing capacity at low-cost producers is likely to affect future investment decisions at other producers, which could affect the timing of the next wave of LNG capacity additions.
Sempra Energy and Outside Sales
In 2020, the United States was the main driver of the recovery of world LNG exports.
US exports declined significantly between June and September 2020, as high US prices reduced the competitiveness of US LNG exports to Asia and Europe.
Later in the year, supply disruptions at other major exporters raised Asian and European prices, increasing the attractiveness of US exports.
As a result, US exports increased dramatically, reaching a record in December 2020.
US LNG exports increased 31%, to 50 million tonnes in 2020.
Sempra Ergy is an American company whose operating companies include: Southern California Gas Company (SoCalGas) and San Diego Gas & Electric (SDG & E) in Southern California; Oncor Electric Delivery Company (Oncor) in Texas; Sempra LNG; and IEnova, based in Mexico.