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.