Monday, April 30, 2012

Cameron LNG Moving Forward

A couple of weeks ago, Sempra Energy signed commercial development agreements with Mitsubishi Corporation and Mitsui & Co., Ltd to develop and construct an LNG export terminal at the company's existing Cameron, LA LNG import facility. In January 2012, Sempra received DOE approval to export LNG to any country with which the  U.S. has a Fair Trade Agreement, which is the first step in getting an LNG export facility approved. Sempra expects to receive Federal Energy Regulatory Commission (FERC) approval for the export facility in the second half of 2013, at which point it could begin construction on the facility if it's still deemed feasible.

The Cameron facility, as currently envisioned, would have three liquefaction trains with combined export capacity of 1.7 Bcf per day (or 12 Mtpa - million tons per annum) and cost approximately $6 billion. The agreements signed this month cover all development expenses (design, permitting and engineering) and
commit the partners to negotiate tolling agreements for 8 Mtpa of the planned 12 Mtpa. Sempra is negotiating with other partners for the remaining 4 Mtpa.

Cameron is behind Cheniere Energy's Sabine Pass facility in terms of schedule, but it is on track and moving forward.


Anonymous said...

Project is now fully subscribed as GDF has taken remaining capacity.


Robert Hutchinson said...

Thanks, Les. Great news! Only a matter of time now.