Cameron LNG project gets key approval from DOE

Sempra Energy (NYSE:SRE) said July 18 that the Cameron liquefied natural gas (LNG) project has received authorization from the  Department of Energy (DOE) to export an additional 1.41 billion cubic feet per day (Bcf/d) from its proposed Louisiana liquefaction expansion project to countries that do not have a free-trade agreement (FTA) with the United States.

With this order, Cameron LNG’s export capacity will increase to 24.92 million tons per annum, equivalent to 3.53 Bcf/d, Sempra reported.

Earlier this year, Cameron LNG received approval from the Federal Energy Regulatory Commission (FERC) to site, construct, and operate the proposed expansion project, which will include up to two additional liquefaction trains (trains No. 4 and No. 5) and one additional full containment LNG storage tank (tank No. 5).

The expansion project will be located next to the Cameron LNG terminal and liquefaction facilities that were approved for construction in 2014 in Hackberry, Louisiana.

Construction on the first phase of the $10bn project (trains No. 1-3) currently is underway. The facility is expected to commence operations during 2018, with the first full year of operations in 2019.

“Receiving DOE’s authorization is an important step forward for the Cameron LNG expansion project,” said Sempra LNG & Midstream President Octavio M.C. Simoes.  “We appreciate the support and leadership of the community and our federal, state and local officials for their commitment to this project that will provide incremental benefits to the economy, while meeting market demand for new LNG supplies,” Simoes said.

The proposed expansion project is subject to completing the required commercial agreements, securing all necessary consents and approvals, obtaining financing and reaching a final investment decision, among other things.

Cameron LNG Holdings, LLC is a joint venture owned by affiliates of Sempra Energy, ENGIE, Mitsui & Co., Ltd. and Japan LNG Investment, LLC, a joint venture formed by affiliates of Mitsubishi Corp. and Nippon Yusen Kabushiki Kaisha, and comprises the Cameron LNG liquefied natural gas (LNG) receipt terminal in Hackberry, Louisiana and the construction and operation of the liquefaction export facilities.

 

 

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.