Sempra inks Cameron LNG phase 2 deal
Sempra Infrastructure, a subsidiary of North American energy infrastructure company Sempra Energy, said April 4 it had agreed preliminary non-binding contracts to expand the 12mn metric tons/year Cameron LNG export plant in Louisiana.
The heads of agreement offers a commercial framework for a new 6.8mn mt/yr train and would also expand Cameron LNG's existing 12mn mt/yr plant through "debottlenecking activities". Sempra signed the HOA with its three partners in the project: TotalEnergies, Mitsui & Co and Japan LNG Investment, the latter on behalf of Mitsubishi and Yippon Yusen Kabushiki Kaisha.
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Under the agreement, Sempra Infrastructure would receive 50.2% of production output from the fourth train, as well as 25% of bottlenecking capacity under tolling agreements. The remaining output would be split equally among Cameron LNG's first phase customers.
Sempra expects to secure long-term sale and purchase agreements for its allotted share before taking a final investment decision on Cameron LNG Phase 2. The company also said on April 4 that Cameron LNG had awarded front-end engineering design (FEED) contracts for the second phase to Bechtel Energy and a partnership of JGC America and Zachry Industrial. One of the contractors will also be selected as the lead engineering, procurement and construction contractor.
"We are excited to continue advancing Cameron LNG Phase 2 with our partners," said Justin Bird, Sempra's CEO. "Today's announcement represents the shared focus of the Cameron LNG partners to increase the supply of cleaner US natural gas to global markets, while also facilitating the energy security of our allies."