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Final investment decision expected in 2013 for Cameron LNG

Sempra, Mitsubishi, Mitsui and GDF-Suez to convert Louisiana terminal into Hackberry LNG plant

Based in San Diego, Califormia, USA, Sempra Energy (Sempra) completed its commercial development agreements with its partners Mitsubishi Corporation (Mitsubishi), Mitsui and Co. (Mitsui), both from Japan, and GDF-Suez, from France, for the Cameron LNG project in Louisiana, to export liquefied natural gas (LNG) from the USA.

Sempra Energy is a utility company of $10 billion revenues in 2011 to build and operate energy infrastructures to provide natural gas and electricity supply with 17,500 employees.

Within Sempra Energy, Sempra LNG subsidiary is in charge of the North American operations for the LNG import terminal located on the west coast of North America and in Hackberry 25 kilometers away from the coast of the Gulf of Mexico along the Calcasieu Channel in Louisiana.

Reporting to Sempra LNG, Cameron LNG is the affiliate running the LNG import terminal in Hackberry.

This Cameron LNG import terminal began operations in 2008 with a regazification capacity of 1.5 billion cf/d which had requested $900 million capital expenditure.

Nearly on the same time, the development of the shale gas has downed the US market prices between $2 and $4 per million btu, the future looks brighter to export this gas to the rest of the world than to import into a saturated market.

In this context, Sempra started to work on the Cameron LNG project to convert its Hackberry terminal into LNG plant.

In January 2012, the Federal Department of the Energy (DOE) approved Cameron LNG project to export up to 12 million t/y of LNG

With a capacity of 12 million t/y, the Cameron LNG project requires $6 billion capital expenditure for which Sempra must back up its investment with commercial agreements.

In April 2012, Sempra signed commercial development agreements with Mitsubishi and Mitsui from Japan for the supply of 8 million t/y.

Then in May 2012, GDF-Suez from France committed to take the remaining 4 million t/y of the Cameron LNG project.

As commercial development agreements, the contracts signed between the partners are binding them to the funding of the project capital expenditure including feasibility studies, front end engineering and design (FEED), permitting, engineering, procurement and construction (EPC).

Foster Wheeler wins FEED for Cameron LNG project

In addition to be partners in the Cameron LNG project, Mitsubishi, Mitsui and GDF-Suez will be Sempra‘s customers with the advantage to secure 20 years sales for Sempra and supply for Mitsubishi, Mitsui, and GDF-Suez.

Sempra and its partners awarded the FEED contract to Foster Wheeler Global Engineering and Construction Group (Foster Wheeler).

Through this FEED contract Foster Wheele provides Sempra and its partners with the:

 – Technical assistance  for the permit applications to the US Federal Energy Regulatory Commission (FERC) in August 2013.

 – Preparation of the technical specifications for the call for tender (CFT) for the EPC contract and evaluation.

 – Integration of the Cameron LNG project within the actual export terminal infrastructures.

In respect with the commercial development agreement signed with Mitsubishi, Mitsui and GDF-Suez, the Cameron LNG project is designed around three LNG trains of 4 million t/y capacity each.

In addition the Cameron LNG project will benefit from the existing import terminal infrastructures with:

 – Two marine berths

 – Three LNG tanks with a total capacity of  480,000 cubic meters

 – 1.5 billion cf/d regazification capacity

Sempra Energy and its partners Mitsubishi, Mitsui and GDF-Suez are targeting to make the final investment decision (FID) for the Cameron LNG project at the end on 2013 in order to commence first operations of the first LNG train on mid 2017 and full completion on mid 2018.

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