Client Login | Contact us
Skip Navigation LinksHome > Services > LNG News > Show Detail News
Sempra to take the FID on Cameron LNG expansion in 2023
2022/05/06
Sempra Energy took steps to advance the development of its Cameron LNG Phase 2 expansion project with its partners at the Cameron LNG joint venture, the company said, adding that these include a non-binding Heads of Agreement.
Sempra Energy took steps to advance the development of its Cameron LNG Phase 2 expansion project with its partners at the Cameron LNG joint venture, the company said, adding that these include a non-binding Heads of Agreement, “which provides the commercial framework for the expansion of the facility by adding a [6.75 MMT/Y] fourth LNG train and also increasing the production capacity of the existing three trains through debottlenecking activities.”
Cameron LNG’s partners has already entered into a project development agreement, which provides for the management and funding of the ongoing development work that is necessary to prepare for a final investment decision on the expansion project.
According to the Global LNG Database, shareholders of the Cameron LNG are Sempra Energy 50.2%, Total (acquired from Engie from Jan-2018) 16.6%, Japan LNG Investment (Mitsubishi-NYK JV) 16.6%, Mitsui 16.6%.
Cameron LNG is currently conducting a competitive Front-End Engineering Design process which is targeted to be completed in the summer of 2023 and the company expects to be in a position to make a final investment decision (FID) thereafter with the project’s commercial service could begin by the first quarter of 2028.

Backgrounds:

On 4 Apr. 2022, Sempra Infrastructure announced that it has entered into a Heads of Agreement (HOA) with affiliates of TotalEnergies, Mitsui & Co. and Japan LNG Investment (Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha (NYK) JV) for the development of the Cameron LNG Phase 2 export project in Hackberry, Louisiana.
The HOA provides the commercial framework for the expansion of the Cameron LNG facility by adding a fourth 6.75 MMT/Y LNG train and increasing the production capacity of the three operating trains through debottlenecking activities.
The HOA also contemplates the allocation to Sempra Infrastructure of 50.2% of the projected fourth train production capacity and 25% of projected debottlenecking capacity under tolling agreements, with the remaining capacity allocated equally to the existing Cameron LNG Phase 1 customers. Sempra Infrastructure plans to sell the LNG corresponding to its capacity under long-term sale and purchase agreements prior to taking a final investment decision.
Concurrently, Cameron LNG has awarded two Front-End Engineering Design (FEED) contracts for the expansion project to Bechtel Energy and a joint venture between JGC America Inc. and Zachry Industrial Inc. “At the conclusion of this competitive FEED process, one contractor is expected to be selected to be the engineering, procurement and construction (EPC) contractor for the project.”
The HOA is a preliminary non-binding arrangement, and the development of the Cameron LNG Phase 2 project remains subject to a number of risks and uncertainties, including reaching definitive agreements, securing all necessary permits, and reaching a final investment decision by each of the Cameron LNG partners, Sempra Infrastructure has reminded.

 

 

Follow Global LNG Info on:

 

 


Source(s) Global LNG Database®, Sempra Infrastructure