Sempra Energy and Total S.A. have entered into a Memorandum of Understanding (MoU) that provides the framework for cooperation in the development of North American LNG export projects.
The scope of the MoU covers continuing the development of the Cameron LNG liquefaction-export project in Louisiana, US and Energía Costa Azul (ECA) liquefaction-export project in Baja California, Mexico.
The MoU between Sempra Energy and Total contemplates Total potentially contracting for approximately up to 9 million tpy of LNG offtake across Sempra Energy’s LNG export development projects on the US Gulf Coast and West Coast of North America, specifically Cameron LNG Phase 2 and ECA LNG. Total, which is already a partner of Cameron LNG joint venture (JV) with a 16.6% stake, also may acquire an equity interest in ECA LNG.
The US$10 billion Phase 1 of the Cameron LNG JV liquefaction-export project includes three liquefaction trains with approximately 14 million tpy of export capacity under construction in Louisiana. Commissioning of the first train is now under way and all three trains are expected to be producing LNG in 2019. Phase 2 of the Cameron LNG project, previously authorised 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 million tpy of capacity.
ECA Phase 1 is a one-train facility with an expected total export capacity of 2.5 million tpy, utilising the existing LNG receipt terminal’s tanks, loading arms and berth. ECA Phase 2 is expected to have additional export capacity of 12 million tpy of LNG. The ECA project is located in Baja California and will be supplied with natural gas from the US.
Development of LNG export facilities is subject to a number of risks and uncertainties, including obtaining binding customer commitments, required regulatory approvals and permits, securing financing, completing the required commercial agreements and other factors, as well as reaching a final investment decision. The ultimate participation by Total remains subject to finalisation of definitive agreements, among other factors.
In addition to the Cameron LNG project and ECA Phases 1 and 2, Sempra Energy is also developing the Port Arthur LNG liquefaction-export project in Texas, US, a facility with two liquefaction trains capable of producing 11 million tpy of LNG.
Read the article online at: https://www.tanksterminals.com/terminals/05112018/total-and-sempra-energy-sign-mou-for-development-of-lng-export-projects/