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US/Mexico: Natural Gas Total and Sempra Energy Collaborate to Develop North American LNG Export Projects

| Editor: Ahlam Rais

Under the agreement, both the companies have agreed to develop the Cameron LNG liquefaction-export project in Louisiana and Energía Costa Azul liquefaction-export project in Baja California, Mexico.

The MOU between Sempra Energy and Total contemplates Total potentially contracting for approximately up to 9 MTPA of LNG offtake across Sempra Energy’s LNG export development projects on the U.S. Gulf Coast and West Coast of North America.
The MOU between Sempra Energy and Total contemplates Total potentially contracting for approximately up to 9 MTPA of LNG offtake across Sempra Energy’s LNG export development projects on the U.S. Gulf Coast and West Coast of North America.
(Source: Deposit Photos)

Paris/France – Sempra Energy and Total have recently announced that they have entered into a Memorandum of Understanding (MOU) that provides the framework for cooperation in the development of North American liquefied natural gas (LNG) export projects. The scope of MOU 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 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 on the U.S. Gulf Coast and West Coast of North America, specifically Cameron LNG Phase 2 and Energia Costa Azul (ECA) LNG. Total, which is already a partner of Cameron LNG joint venture with a 16.6 % stake, also may acquire an equity interest in ECA LNG.

The 10 billion dollar 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. 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 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.

ECA Phase 1 is a one-train facility with an expected total export capacity of 2.5 MTPA, utilising the existing LNG receipt terminal’s tanks, loading arms and berth. ECA Phase 2 is expected to have additional export capacity of 12 MTPA of LNG. The ECA project is located in Baja California, Mexico and will be supplied with natural gas from the United States.

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.

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