Cameron LNG Receives Final Federal Regulatory Approval For Landmark Liquefaction-Export Project
Sep 10, 2014
SAN DIEGO, Sept. 10, 2014 /PRNewswire/ -- Sempra Energy (NYSE: SRE) subsidiary Cameron LNG announced today that it has received final authorization from the U.S. Department of Energy (DOE) to export domestically produced liquefied natural gas (LNG) from its proposed liquefaction facilities in Hackberry, La., to countries that do not have a free-trade agreement (FTA) with the U.S.
"Today's decision marks the last major regulatory hurdle for our Cameron LNG liquefaction-export project, clearing the way for execution of the largest capital project in Sempra Energy's history," said Debra L. Reed, chairman and CEO of Sempra Energy. "This landmark project will create thousands of jobs and economic benefits for Louisiana and the U.S. for decades to come, while delivering natural gas to America's trading partners in Europe and Asia."
The liquefaction-export project is expected to create approximately 3,000 on-site jobs, as well as several hundred jobs in Louisiana in support of the project, including fabrication, engineering and operational jobs. Nearly 200 full-time jobs will be added to the operations of Cameron LNG.
Earlier this year, Cameron LNG received authorization from the Federal Energy Regulatory Commission (FERC) to site, construct and operate the three-train liquefaction and export facilities. When fully completed, the project will have export capabilities of 12 million tonnes per annum of LNG, or approximately 1.7 billion cubic feet per day.
"With this final authorization from DOE and the previous permit granted by FERC, we will be able to remain on schedule and commence operations during 2018," said Octavio M.C. Simoes, president of Sempra LNG. "We appreciate the ongoing support of federal, state and local elected officials, as well as the local community, for their steadfast commitment to moving our project forward."
Last month, Cameron liquefaction project sponsors, Sempra LNG, GDF SUEZ S.A. (GDF SUEZ), Mitsui & Co., Ltd. (Mitsui) and Mitsubishi Corporation (Mitsubishi), through a related company jointly established with Nippon Yusen Kabushiki Kaisha (NYK), each approved a final investment decision for the project. The total project cost is estimated at approximately $10 billion, including contribution of the existing Cameron LNG facilities, construction of the new facilities and financing cost.
Subject to other conditions to the equity and debt financing, Sempra Energy will have an indirect 50.2-percent ownership interest in Cameron LNG and the related liquefaction project, and the remaining portion will be owned by affiliates of GDF SUEZ, Mitsubishi (through a related company jointly established with NYK) and Mitsui, each with 16.6-percent stakes.
Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2013 revenues of more than $10.5 billion. The Sempra Energy companies' 17,000 employees serve more than 31 million consumers worldwide.
This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by words like "believes," "expects," "anticipates," "plans," "estimates," "projects," "forecasts," "contemplates," "intends," "depends," "should," "could," "would," "will," "may," "potential," "target," "pursue," "goals," "outlook," "maintain" or similar expressions, or discussions of guidance, strategies, plans, goals, opportunities, projections, initiatives, objectives or intentions. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Future results may differ materially from those expressed in the forward-looking statements. Forward-looking statements are necessarily based upon various assumptions involving judgments with respect to the future and other risks, including, among others: local, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions and the timing of actions, including issuances of permits to construct and licenses for operation, by the California Public Utilities Commission, California State Legislature, U.S. Department of Energy, Federal Energy Regulatory Commission, Nuclear Regulatory Commission, Atomic Safety and Licensing Board, California Energy Commission, U.S. Environmental Protection Agency, California Air Resources Board and other regulatory, governmental and environmental bodies in the United States and other countries in which we operate; capital markets conditions, including the availability of credit and the liquidity of our investments; the timing and success of business development efforts and construction, maintenance and capital projects, including risks in obtaining permits, licenses, certificates and other authorizations on a timely basis and risks in obtaining adequate and competitive financing for such projects; delays in the timing of costs incurred and the timing of regulatory agency authorization to recover such costs in rates from customers; inflation, interest and exchange rates; the impact of benchmark interest rates, generally Moody's A-rated utility bond yields, on our California utilities' cost of capital; energy markets, including the timing and extent of changes and volatility in commodity prices; the availability of electric power, natural gas and liquefied natural gas, including disruptions caused by failures in the North American transmission grid, pipeline explosions and equipment failures and the decommissioning of San Onofre Nuclear Generating Station (SONGS); weather conditions, natural disasters, catastrophic accidents, and conservation efforts; risks inherent with nuclear power facilities and radioactive materials storage, including the catastrophic release of such materials, the disallowance of the recovery of the investment in, or operating costs of, the nuclear facility due to an extended outage and facility closure, and increased regulatory oversight; risks that partners or counterparties will be unable or unwilling to fulfill their contractual commitments; risks posed by decisions and actions of third parties who control the operations of investments in which we do not have a controlling interest; wars, terrorist attacks that threaten system operations and critical infrastructure, and cybersecurity threats to the energy grid and the confidentiality of proprietary information and the personal information of customers; business, regulatory, environmental and legal decisions and requirements; expropriation of assets by foreign governments and title and other property disputes; the impact on reliability of San Diego Gas & Electric Company's electric transmission and distribution system due to increased amount and variability of power supply from renewable energy sources; the impact on competitive customer rates of the growth in distributed and local power generation and the corresponding decrease in demand for power delivered through San Diego Gas & Electric Company's electric transmission and distribution system; the inability or determination not to enter into long-term supply and sales agreements or long-term firm capacity agreements, due to insufficient market interest, unattractive pricing or other factors; the resolution of litigation; and other uncertainties, all of which are difficult to predict and many of which are beyond the control of the company. These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the Securities and Exchange Commission. These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on the company's website at www.sempra.com.
Investors should not rely unduly on any forward-looking statement. These forward-looking statements speak only as of the date hereof, and the company undertakes no obligation to update or revise these forecasts or projections or other forward-looking statements, whether as a result of new information, future events or otherwise.
Sempra International, LLC, and Sempra U.S. Gas & Power, LLC, are not the same companies as the California utilities, San Diego Gas & Electric (SDG&E) or Southern California Gas Company (SoCalGas), and Sempra International, LLC, and Sempra U.S. Gas & Power, LLC, are not regulated by the California Public Utilities Commission. Sempra International's underlying entities include Sempra Mexico and Sempra South American Utilities. Sempra U.S. Gas & Power's underlying entities include Sempra Renewables and Sempra Natural Gas.
SOURCE Sempra Energy
For further information: Paty Ortega Mitchell, Sempra International, (866) 257-1298, email@example.com, www.cameronLNG.com; Art Larson, Sempra Energy, (877) 340-8875, ARLarson@sempra.com, www.sempra.com; Financial Contact: Kendall Helm, Sempra Energy, (877) 736-7727, firstname.lastname@example.org