US forges ahead with LNG export projects

The US$10 billion Phase 1 of the Cameron LNG joint-venture liquefaction-export project has been pretty much completed Photo: Sempra The US$10 billion Phase 1 of the Cameron LNG joint-venture liquefaction-export project has been pretty much completed Photo: Sempra

Two energy giants have entered into an agreement which they say provides the framework for cooperation in the development of North American LNG export projects going forward.

Sempra Energy and Total signed the Memorandum of Understanding (MOU) which covers continuing the development of the Cameron LNG liquefaction-export project in Louisiana and Energía Costa Azul (ECA) liquefaction-export project in Baja California, Mexico.

"The US is increasing its global leadership position in the production of oil and natural gas”, said Jeffrey W. Martin, CEO of Sempra Energy.

“In large measure, the next step in fulfilling our country’s energy potential is the development of critical export infrastructure for LNG. We plan to leverage the competitive strengths of both companies to accelerate development of North American LNG exports to global markets.”

Export development

The MOU between Sempra Energy and Total contemplates Total potentially contracting for approximately up to 9 million tonnes per annum (Mtpa) of LNG offtake across Sempra Energy’s LNG export development projects in North America, specifically Cameron LNG Phase 2 and Energia Costa Azul (ECA) LNG.

The US$10 billion Phase 1 of the Cameron LNG joint-venture liquefaction-export project includes three liquefaction trains with approximately 14 Mtpa of export capacity under construction in Louisiana.

Phase 2 of the Cameron LNG project, previously authorized by FERC and being developed jointly by the Cameron LNG co-owners, encompasses up to two additional liquefaction trains and up to two additional LNG storage tanks with approximately 9 Mtpa of capacity.

In addition to the Cameron LNG project and ECA Phase 1 and 2, Sempra Energy is also developing the Port Arthur LNG liquefaction-export project in Texas, a facility with two liquefaction trains capable of producing 11 Mpta of LNG.

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