A Sempra Energy unit, Cameron LNG, has signed commercial development agreements with Mitsubishi Corporation and Mitsui & Co., to develop and construct a natural gas liquefaction export facility. The facility will be located at the site of the Cameron LNG receipt terminal in Hackberry, LA.
The commercial development agreements bind the parties to fund all development expenses, including design, permitting and engineering, as well as to negotiate 20-year tolling agreements, based on agreed-upon terms outlined in the commercial development agreements. Each tolling agreement will be 4 Mtpa. Negotiations with other parties for the export of the remaining 4 Mtpa are ongoing.
The completed liquefaction facility is expected to be comprised of three liquefaction trains with a total export capability of 12 Mtpa of liquefied natural gas (LNG), or approximately 1.7 billion cubic feet (Bcf) per day. Construction on the project is expected to begin in late 2013 with operations to commence in late 2016.
The liquefaction facility will utilize Cameron LNG’s existing facilities, including two marine berths capable of accommodating Q-Flex sized LNG ships, three LNG storage tanks of 480,000CUM, and vaporization capability for regasification services of 1.5 Bcf per day. The anticipated incremental investment in the three-train liquefaction project is estimated to be USD 6 billion, the majority of which will be project-financed and the balance provided by the project partners in a joint-venture arrangement.
