Sempra and partners ink deal on Cameron LNG expansion

A unit of US LNG player Sempra and its partners in Cameron LNG have signed a non-binding deal to expand the export plant in Louisiana.

Sempra Infrastructure said in a statement on Monday it has entered into a heads of agreement with affiliates of TotalEnergies, Mitsui & Co. and Japan LNG Investment, a company jointly owned by Mitsubishi Corporation and NYK.

Additionally, Sempra Infrastructure said that Cameron LNG awarded two front-end engineering design (FEED) contracts to Bechtel and a joint venture between JGC America and Zachry Industrial.

At the conclusion of this competitive FEED process, Sempra expects to select one contractor to be the engineering, procurement and construction (EPC) contractor for the Cameron LNG Phase 2 export project.

The HOA is a preliminary non-binding arrangement and provides the commercial framework for the expansion of the Cameron LNG facility.

Sempra said the development of the Cameron LNG Phase 2 project remains subject to a number of risks and uncertainties.

These include reaching definitive agreements, securing all necessary permits, and reaching a final investment decision by each of the Cameron LNG partners, it said.

Debottlenecking and enhancements

Sempra holds 50.2 percent of Cameron LNG, the operator of the existing three-train 12 mtpa liquefaction facility.

The company and its partners previously planned to build two additional LNG units, adding about 10 mtpa.

However, Sempra said last year that the partners had changed their original plans and aim to build only the fourth train with a capacity of about 6.75 mtpa.

Earlier this year, Sempra asked US energy regulators to approve its revised expansion plans for the Cameron LNG export plant.

Besides the additional train, the expansion also includes debottlenecking of the existing three LNG trains and design enhancements such as electric turbines.

Sempra also said that the HOA contemplates the allocation to Sempra Infrastructure of 50.2 percent of the projected fourth train production capacity and 25 percent of projected debottlenecking capacity under tolling agreements.

The remaining capacity would be allocated equally to the existing Cameron LNG Phase 1 customers.

Sempra plans to sell the LNG corresponding to its capacity under long-term sale and purchase agreements prior to taking FID.

“We are excited to continue advancing Cameron LNG Phase 2 with our partners,” said Justin Bird, CEO of Sempra Infrastructure.

“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,” Bird said.

Most Popular

Technip Energies wins contract for Eni’s Coral Norte FLNG

France-based LNG engineering giant Technip Energies has won a contract for preliminary work on Eni's second FLNG project in Mozambique, Coral Norte (Coral North).

Victrol: LNG London hits bunkering milestone

The Shell-chartered inland bunkering vessel LNG London, owned by a joint venture of Belgium's Victrol and France's Sogestran, has reached a new operational milestone.

Atlantic LNG shipping rates dip, European prices up

Atlantic spot LNG shipping rates decreased this week, marking the largest week-on-week decline since January.

More News Like This

LNG Canada sends second cargo

Shell-led LNG Canada has shipped the second cargo of liquefied natural gas from its Kitimat facility on the west coast of Canada. LNG Canada shareholder Petronas will deliver this shipment to Japan.

QatarEnergy LNG carrier wraps up trials in China

A 174,000-cubic-meter liquefied natural gas (LNG) carrier, built as part of QatarEnergy's massive shipbuilding program, has completed its trials in China, according to Hudong-Zhonghua.

Shell’s LNG Canada to ship second cargo

Shell-led LNG Canada is expected to soon ship the second cargo of liquefied natural gas from the Kitimat facility on the west coast of Canada, according to shipping data.

Shell ships first LNG Canada cargo

LNG giant Shell and its partners have shipped the first cargo produced at the LNG Canada facility in Kitimat, on the west coast of Canada.