Sempra Cancels LNG Project in Gulf of California, Protecting “Aquarium of the World”
Published · Updated · 3 min read
Energy company Sempra Infrastructure has canceled its proposed Vista Pacífico liquefied natural gas export terminal in Mexico’s Gulf of California, marking a major environmental victory for one of the world’s most biodiverse marine regions.
The company announced in December 2025 that it would terminate its development agreement with Mexico’s state utility Comisión Federal de Electricidad (CFE), ending plans for the facility in the state of Sinaloa.
The decision protects a UNESCO World Heritage Site famously called the “Aquarium of the World” by ocean explorer Jacques Cousteau, home to endangered whales, dolphins, and Mexico’s most productive fisheries.
Years of Opposition Pay Off
Environmental groups, Indigenous communities, and international conservation organizations had fought the project for years, warning it would devastate the Gulf’s irreplaceable ecosystems.
The United Nations issued formal communications expressing “profound concern” about the planned LNG terminals, warning they posed serious environmental, climate, and human rights risks.
The International Union for the Conservation of Nature, representing 1,400 conservation experts worldwide, passed a resolution urging the U.S. and Mexico to prohibit LNG development in the Gulf to protect biodiversity and local communities.
The facility would have processed natural gas from West Texas shale fields for export to Asian markets. At full capacity, it could have produced up to 13.9 million tonnes of greenhouse gas emissions annually.
Protecting an Ecological Treasure
The Gulf of California contains 891 fish species, with 90 found nowhere else on Earth. The region hosts 39 percent of the world’s marine mammal species and supports populations of eight great whale species.
Among its most endangered residents is the vaquita, the world’s most threatened marine mammal, with only 10 individuals remaining.
Recent research shows concerning population declines among whales and dolphins in the Gulf. Scientists documented sperm whales and short-finned pilot whales “effectively disappearing” from parts of the region, with increased observations of emaciated blue whales and bottlenose dolphins.
The Gulf’s fisheries account for 70 percent of Mexico’s total fish catches and generated approximately $223 million in 2013. The fishing industry employs around 300,000 people, making it the economic backbone of coastal communities.
Business and Policy Shifts
Sempra cited a “change in priorities” for both the company and CFE as the reason for canceling the project. The terminal held all necessary export permits but had failed to attract long-term sales contracts needed for financing.
The decision comes as Mexico advances renewable energy initiatives under President Claudia Sheinbaum’s administration. The government recently approved 20 private renewable energy projects representing $4.75 billion in investment, adding 3,320 megawatts of generation capacity.
The Federal Electricity Commission is also investing $710 million in solar expansion at Puerto Peñasco, which will become Latin America’s largest solar complex at 1,000 megawatts capacity.
While Sempra canceled Vista Pacífico, the company continues developing the Energía Costa Azul LNG project in Baja California, which benefits from existing infrastructure and secured buyer contracts.
Community Rights Protected
Indigenous communities and local fishing populations in Topolobampo opposed the project, citing threats to livelihoods dependent on healthy marine ecosystems.
The UN warned the infrastructure would impact coastal and Indigenous communities while potentially proceeding without adequate consultation or informed consent.
Mexico’s 2020 environmental law amendment incorporated protections for biocultural heritage, recognizing threats from mega-projects and mandating that authorities include traditional knowledge in ecological planning.
The Supreme Court set precedent in 2022 by revoking environmental authorization for a $5 billion fertilizer plant at Topolobampo based on failure to consult Indigenous communities.
What Comes Next
The cancellation eliminates one of four proposed LNG export terminals in the Gulf region, but other projects remain under development.
Conservation groups emphasize that sustained vigilance is needed to protect the Gulf from industrial pressures while Mexico transitions its energy system.
Scientific assessments indicate sustainable fisheries management in the Gulf could generate revenues ten times greater than current levels, demonstrating that environmental protection aligns with long-term economic benefits for coastal communities.
The decision shows that global conservation pressure, scientific evidence, community opposition, and unfavorable market conditions can combine to protect irreplaceable ecosystems even after projects receive regulatory approval.
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