Sempra targets Cameron LNG expansion FID in H1 2025

US LNG exporter Sempra Infrastructure, a unit of Sempra, expects to take a final investment decision to expand its Cameron LNG plant in the first half of 2025.

“We are anticipating taking an FID on Cameron Phase 2 as early as the first half of next year,” Justin Bird, CEO of Sempra infrastructure, said during Sempra’s fourth quarter earnings call on Tuesday.

In March last year, Sempra Infrastructure and its partners TotalEnergies, Mitsui & Co, and Japan LNG Investment, a company held by Mitsubishi Corp and NYK, secured approval from the US FERC for the revised expansion plans for the Cameron LNG export plant in Lousiana.

Cameron LNG, which recently shipped its 700th LNG cargo, operates the existing three-train 12 mtpa liquefaction facility and the expansion project includes building the fourth train with a capacity of about 6 mtpa.

The partners previously selected Bechtel for the Cameron Phase 2.

Bird said in August last year that Sempra Infrastructure expected to take FIDs in 2024 to expand its Cameron LNG plant as well as its Port Arthur LNG export project in Texas.

He said during the call on Wednesday that Sempra Infrastructure’s priorities “remain focused on advancing commercial discussions for offtake volume and equity ownership at Port Arthur Phase 2 and assessing Cameron LNG Phase 2’s EPC opportunities.”

“At Cameron LNG Phase 2, we’ve been working with Bechtel on value engineering and at this stage we feel it’s best to continue those efforts while evaluating other potential EPC contractors,” he said.

“We’re continuing to work closely with Bechtel on Port Arthur Phase 1 and potentially Phase 2, but we and the Cameron partners want to take some additional time to help ensure a cost effective build plan and conduct additional value engineering and analysis to improve the overall value of the project to our customers,” Bird said.

He also said that Sempra Infrastructure and its partners are “exploring procurement or reservation of long lead and critical path equipment” for the Cameron Phase 2.

Porth Arthur LNG

In March last year, Sempra Infrastructure took a final investment decision for the first phase of its Port Arthur LNG export project worth about $13 billion.

Besides a 20-year LNG SPA for 5 million tonnes of LNG, US energy giant ConocoPhillips is a shareholder in the project with a 30 percent stake.

Last year, Sempra Infrastructure also completed the sale of a 42 percent non-controlling interest in its Port Arthur LNG Phase 1 project to compatriot private equity firm KKR.

Sempra Infrastructure has a controlling 28 percent indirect interest in Phase 1 at the project level.

Bechtel is also building this LNG export plant with a total capacity of about 13 mtpa.

In addition to the first phase, Sempra Infrastructure is also working on the second Porth Arthur LNG phase.

In September last year, Sempra Infrastructure won approval for the US FERC for the proposed Phase 2 project, that includes the addition of two liquefaction trains capable of producing up to 13 mtpa of LNG.

However, the Biden administration said in January it would “temporary pause” pending decisions for LNG export terminals.

The US paused pending decisions on exports of LNG to non-FTA countries until the Department of Energy can update the underlying analyses for authorizations.

DOE still needs to approve Sempra Infrastructure’s non-FTA application for the second phase of the Port Arthur LNG project.

“We received FERC approval in September and earlier this month FERC staff issued an environmental assessment finding no adverse impact as a result of the Port Arthur, Louisiana Connector Pipelines amendment,” Bird said during the call.

“We are now awaiting the DOE non-FTA export permit. We’re continuing to work with Bechtel on an EPC agreement that can optimize efficiencies with the Phase 1 construction schedule,” he said.

“And we’re continuing our marketing efforts for offtake and equity and having financing discussions with potential lenders,” Bird said.

He added that ECA Phase 1 and Port Arthur Phase 1 “remain on track”.

ECA Phase 1 is expected to reach COD in the summer of 2025 and Port Arthur train 1 in 2027 and train 2 in 2028.

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