Total and Sempra Energy Sign MOU on North American LNG Projects
Total and Sempra Energy have signed an MOU that provides the framework for cooperation in the development of North American 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 involves Total potentially contracting for up to about nine million tons 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. Total, already a partner of the Cameron LNG joint venture with a 16.6 percent stake, may also acquire an equity interest in ECA LNG.
The $10 billion 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 nine Mtpa of capacity.
ECA Phase 1 is a one-train facility with an expected total export capacity of 2.5 Mtpa, using 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 U.S. This week, Sempra Energy announced that its subsidiaries IEnova and Sempra LNG & Midstream signed three Heads of Agreements with affiliates of Total, Mitsui & Co and Tokyo Gas for the full export capacity of Phase 1 of the project. The three companies each will potentially purchase approximately 0.8 Mtpa of LNG from ECA LNG Phase 1. A final investment decision for ECA LNG is targeted in late 2019 with potential first LNG deliveries in 2023.
Sempra Energy has a long-term goal of developing more than 45 Mtpa of LNG export capacity in North America. "The U.S. is increasing its global leadership position in the production of oil and natural gas”, said Jeffrey W. Martin, CEO of Sempra Energy. “In large measure, the next step in fulfilling our country’s energy potential is the development of critical export infrastructure for LNG.”