Mitsui, Mitshubishi to Invest in Louisiana LNG Project

Mitsui, Mitsubishi and GDF Suez have signed a tolling agreements with Sempra Energy to support the development, financing and construction of a liquefied natural gas (LNG) export facility at the site of the Cameron LNG receipt terminal in Hackberry, Louisiana.

The joint-venture agreement calls for affiliates of GDF Suez, Mitsubishi (through a related company jointly established with Nippon Yusen Kabushiki Kaisha) and Mitsui each to acquire 16.6-percent equity in the existing facilities and the liquefaction project. A Sempra Energy affiliate will retain 50.2 percent, Sempra said in a statement. 

The facility will provide an export capability of 12 Mtpa of LNG, or approximately 1.7 billion cubic feet per day (Bcfd), and the full regasification capacity of 1.5 Bcfd.  Each tolling agreement is for 4 Mtpa.

Total cost of the project is expected to be $10 billion and construction is likely to start in 2014 with the first phase of liquefaction operations to commence in the second half of 2017. Full commercial operation of all three trains is expected in 2018.