Sempra Energy Unit Signs Commercial Development Agreement With GDF SUEZ for Remaining Capacity at Louisiana Liquefaction Facility
May 3, 2012
SAN DIEGO, May 3, 2012 /PRNewswire/ -- Sempra Energy (NYSE: SRE) subsidiary Cameron LNG today announced it has signed a third and final commercial development agreement with a subsidiary of GDF SUEZ S.A. (GSZ.FP) (GDF SUEZ) to develop the remaining liquefaction train planned at the site of the Cameron LNG terminal in Hackberry, La.
With this agreement of 4 million tonnes per annum (Mtpa) with GDF SUEZ, Cameron LNG has commitments for the full capacity toward the development of the new liquefaction facility that will 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 start in late 2013 with operations to commence in late 2016.
"This agreement with GDF SUEZ completes our efforts to secure world-class project partners and moves us into the next phase of our plan to develop and construct this project at the site of our Cameron LNG facility," said Octavio M. C. Simoes, president of Sempra Energy's LNG operations.
This is the third contract the company has executed for the development of the liquefaction facility. On April 17, Cameron LNG announced the signing of two commercial development agreements with Mitsubishi Corporation (Mitsubishi) and Mitsui & Co., Ltd. (Mitsui) for the development of 8 Mtpa.
The agreements with Mitsubishi, Mitsui and GDF SUEZ 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 key terms outlined in the commercial development agreements.
"Mitsubishi, Mitsui and GDF SUEZ are some of the largest participants in the LNG industry and will be foundation customers for our liquefaction project," said E. Scott Chrisman, vice president of Sempra's LNG commercial group. "Entering into these commercial development agreements is a major milestone for our project and we look forward to working with these parties toward achieving a final investment decision in late 2013."
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 with a combined storage capacity of 480,000 cubic meters, and vaporization capability for regasification services of 1.5 Bcf per day. The anticipated incremental investment in the project is estimated to be $6 billion, the majority of which will be project- financed and the balance provided by project partners in a joint-venture arrangement.
Cameron LNG has approval from the U.S. Department of Energy to export up to 12 Mtpa of domestically produced LNG from the Cameron LNG terminal to all current and future Free Trade Agreement countries while the authorization to export LNG to countries with which the U.S. does not have a Free Trade Agreement is pending review by the DOE. Earlier this week, Cameron LNG also pre-filed a request to initiate the Federal Energy Regulatory Commission permitting process for the Cameron liquefaction project.
Sempra Energy's subsidiaries operate two LNG receipt terminals in North America -- Energia Costa Azul near Ensenada, Mexico, and Cameron LNG.
GDF SUEZ puts responsible growth at the core of its businesses in order to meet major energy and environmental challenges: meeting energy needs, safeguarding supplies, fighting climate change and maximizing the use of resources. The Group provides innovative, high-performance solutions to individuals, cities and businesses by relying on a diversified gas supply, flexible and low carbon-emission electricity generation, and unique expertise in four key sectors: liquid natural gas, energy efficiency services, independent power production and environmental services. GDF SUEZ has 218,900 employees worldwide and achieved revenues of 90.7 billion euros in 2011. GDF SUEZ is listed on the Brussels, Luxembourg and Paris stock exchanges and is represented in the main international indices: CAC 40, BEL 20, DJ Stoxx 50, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe, ASPI Eurozone and ECPI Ethical Index EMU.
Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2011 revenues of $10 billion. The Sempra Energy companies' 17,500 employees serve more than 31 million consumers worldwide.
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Note: Formerly known entities Sempra Generation, Sempra LNG and Sempra Pipelines & Storage have now been realigned under Sempra International and Sempra U.S. Gas & Power.
SOURCE Sempra Energy
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