Sempra LNG signs agreement with RasGas to bring LNG from Qatar to new U.S. Gulf Coast terminal
SAN DIEGO, June 8, 2009 – Sempra LNG, a subsidiary of Sempra Energy (NYSE: SRE), today announced it has signed an agreement with one of the world’s largest suppliers of liquefied natural gas (LNG), Ras Laffan Liquefied Natural Gas Company Limited 3 (RL 3), an affiliate of RasGas Company Limited (RasGas). Cargoes are expected to commence from Aug. 1, 2009, through Dec. 31, 2010.
RasGas will have the ability to sell LNG to the U.S. market by delivering it to Sempra LNG at Sempra’s Cameron LNG receipt terminal near Lake Charles, La. The flexible agreement is for the purchase of up to 50 cargoes with each cargo containing up to 4.8 billion cubic feet of natural gas.
Construction is nearing completion at Cameron LNG and the new terminal is expected to go into commercial operation in July.
“Teaming up with RasGas to move its LNG through our new Cameron terminal into the U.S. gas market speaks to the value of our assets and the strength of our marketing capabilities,” said Darcel L. Hulse, president and chief executive officer of Sempra LNG. “This short-term agreement allows us to utilize the remaining capacity at our new Louisiana terminal more fully, while expanding our gas marketing opportunities.”
Cameron LNG is located near Henry Hub and the Gulf Coast along the Calcasieu Ship Channel, about 15 miles south of Lake Charles.
A second Sempra LNG receipt terminal, Energía Costa Azul, located in Baja California, Mexico, began commercial operation in 2008. It is the only LNG receipt terminal operating on the west coast of North America. The project’s capacity is fully subscribed.
LNG is simply natural gas in liquid form. To reach a liquid state, natural gas must be cooled. The liquid is then transported aboard specially designed carriers for delivery to receipt terminals. These receipt terminals store LNG, return it to its gaseous state and dispatch it into pipelines for customer use. In more than 50 years of shipping, LNG carriers have traveled more than 100 million miles without a major incident.
Sempra LNG develops and operates LNG receipt terminals serving North American markets. Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2008 revenues of nearly $11 billion. The Sempra Energy companies’ 13,600 employees serve more than 29 million consumers worldwide.
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