Sempra Energy and Total have entered into a memorandum of understanding (MoU) that covers the continued the development of the Cameron LNG liquefaction-export project in Louisiana, US, and the Energía Costa Azul (ECA) liquefaction-export project in Baja California, Mexico.
Under the MoU, Total may potentially contract up to 9mn t/y of LNG offtake across Sempra Energy’s LNG export development projects on the US Gulf Coast and West Coast of North America, specifically Cameron LNG Phase 2 and ECA LNG. Total, which is already a partner of Cameron LNG joint venture with a 16.6% stake, also may acquire an equity interest in ECA LNG.
‘The US is increasing its global leadership position in the production of oil and natural gas,’ says 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. Sempra Energy has a long-term goal of developing more than 45mn t/y of LNG export capacity in North America. That is why our relationship with Total is so important. We plan to leverage the competitive strengths of both companies to accelerate development of North American LNG exports to global markets.’
The $10bn Phase 1 of the Cameron LNG joint-venture liquefaction-export project includes three liquefaction trains with approximately 14mn t/y 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 encompasses up to two additional liquefaction trains and up to two additional LNG storage tanks with approximately 9mn t/y of capacity.
ECA Phase 1 is a one-train facility with an expected total export capacity of 2.5mn t/y, utilising the existing LNG receipt terminal’s tanks, loading arms and berth. ECA Phase 2 is expected to have additional export capacity of 12mn t/y of LNG. The ECA project will be supplied with natural gas from the US.
In addition to the Cameron LNG project and ECA Phase 1 and 2, Sempra Energy is also developing the Port Arthur LNG liquefaction-export project in Texas, a facility with two liquefaction trains capable of producing 11mn t/y of LNG.
With a portfolio of 15.6mn t/y of LNG managed in 2017, Total claims to be the second largest publicly traded LNG player in the world and a shareholder in 12 liquefaction facilities that currently generate 25% of global LNG output.