Turning to Sempra Mexico, we're continuing to develop projects that provide cleaner, more reliable energy as well as energy accessibility for the people of Mexico. We're continuing to monitor the situation, but as a result of the current pandemic, it's reasonable to expect that some of the construction capital will be deferred from 2020 to 2021. Nevertheless, we believe demand for our existing network of pipelines and power assets remain strong and are critical to the people of Mexico.
In the q&a
Guys, I know, you are doing OK in this challenging time. I wanted to first just touch on ECA and the process from here in terms of the export permit. Could you just talk in a little more detail in terms of just what the steps are to get through that process, the review by SENER, sort of just where we stand, just so we can try to follow that a little more closely?
Response:
Yeah look, there is no doubt that what's going on in Mexico with the pandemic has the government focused on that and it is impacting the timing of the SENER approval. But I think that one of the other things that we've taken into consideration is that this is the first time the SENER has had to approve an LNG export facility in Mexico. So, it's a different animal for them. But having said that, the discussions our teams have had with various members of the administration in Mexico, including the President of Ensenada [Phonetic], that gives us great confidence that this SENER permit is going to get approved. It's just a matter of timing.
And when you look at what's going on in Mexico and specifically in Baja California, this project is extremely important to that region, given the number of jobs that's going to bring, the economic stimulus and just the impact it's going to have on the municipalities. So, we've been having conversation with the Governor of the State and he is extremely supportive of this project and has spoken out on that.
The other thing I'd mention is, when you look at this project, it's not only good for the U.S. and our natural gas producers, but it brings badly needed foreign direct investments in Mexico, it brings natural gas to customers and businesses in the region, and it also provides offtake customers in Asia with a highly competitive and strategic access point on the West Coast. So, this is a winner. It's just a matter of time.
Second Question on Mexico: Understood. So, if I'm sort of hearing that correctly, certainly COVID can cause delays, but it's not as if there is some sort of change either politically or policy wise, just that would drive a different outcome or more challenge than we've seen before?
Answer:
No, we don't believe. So again, I think everyone understands the economic impact and what this does, not just to export gas through Mexico, but it actually brings natural gas to that region, which badly needs it. I would also add to Dennis's point, Stephen, too. The level of support, we've had from the Secretary of Energy, Secretary of State, the entire administration here in the United States has also been quite helpful. So, I mean, our forecast remains that we'll get the SENER permit in the second quarter. We've got the right team in place to do it. I think we have to be sensitive to the fact that everyone, not just in the United States, but in Mexico is taking the COVID challenge very seriously and that's certainly impacting the delay as the agencies are currently shutdown
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