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April 5, 2022

Sempra signs deal to raise capacity of LNG export project in US

The Cameron LNG Phase II will see the addition of a fourth train with a production capacity of up to 6.75Mtpa.

Sempra Infrastructure has signed an agreement with the affiliates Mitsui & Co., TotalEnergies, and Japan LNG Investment to develop the proposed Cameron LNG Phase II export project in Louisiana, US.

With the heads of agreement (HOA), a commercial framework has been provided for the expansion of the Cameron LNG facility with a fourth liquefied natural gas (LNG) train.

The partners also aim to boost the production capacity of the three operating LNG trains by undertaking de-bottlenecking activities.

A 50.2% stake may be allocated to Sempra subsidiary Sempra Infrastructure in the planned fourth train production capacity.

The Sempra subsidiary is also expected to receive 25% of the projected de-bottlenecking capacity, under tolling agreements.

The remaining capacity will be equally allocated to the existing customers of the Cameron LNG Phase I.

Sempra Infrastructure CEO Justin Bird said: “We are excited to continue advancing Cameron LNG Phase II with our partners.

“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.”

Built with an investment of $10bn, the Cameron LNG export facility achieved full commercial operations in August 2020.

The three liquefaction trains currently have an estimated export capacity of 12 million tonnes per annum (Mtpa), or nearly 1.7 billion cubic feet per day of LNG.

The fourth train under the proposed Phase II project is expected to have a maximum production capacity of 6.75Mtpa.

Sempra said that two contracts for front end engineering design (FEED) have been awarded to Bechtel Energy, and a joint venture between JGC America, and Zachry Industrial, for the Cameron LNG phase II project.

Sempra Infrastructure signed a memorandum of understanding (MOU) with Korea Gas Corporation (KOGAS) to explore new infrastructure opportunities for energy transition.

The MOU will focus on project development and off take in various business areas such as LNG, hydrogen infrastructure, and carbon capture and sequestration.

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