Sempra Infrastructure, a subsidiary of Sempra, has announced it has entered into a Heads of Agreement (HoA) with affiliates of TotalEnergies, Mitsui & Co. and Japan LNG Investment, LLC, a company jointly owned by Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha (NYK), for the development of the Cameron LNG Phase 2 export project in Hackberry, Louisiana.
“We are excited to continue advancing Cameron LNG Phase 2 with our partners,” says Justin Bird, CEO of Sempra Infrastructure. “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.”
The HOA provides the commercial framework for the expansion of the Cameron LNG facility by adding a fourth liquefied natural gas (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.
Additionally, Sempra Infrastructure announced that Cameron LNG awarded two Front-End Engineering Design (FEED) contracts to Bechtel Energy Inc. 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 proposed Cameron LNG Phase 2 project is expected to include a single LNG train with a maximum production capacity of 6.75 million tonnes per annum (Mtpa) of LNG, as well as debottlenecking of the existing three LNG trains. The project is expected to include certain design enhancements resulting in a more cost-effective and efficient facility, while also reducing overall greenhouse gas emissions.
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.