Sempra Energy reports jump in annual profit

San Diego-based energy company and LNG operator Sempra Energy reported a jump in earnings in 2019 that is lauded as one of the company’s strongest year in history. 

Image courtesy of Sempra Energy

Sempra Energy reported full-year earnings of $2.1 billion, up from $924 million in 2018.

“This year has been one of the strongest in our company’s history,” said Jeffrey Martin, chairman and CEO of Sempra Energy.

Sempra Energy noted it is continuing to focus on its goal of developing liquefied natural gas (LNG) infrastructure that can deliver up to 45 million tonnes per annum (Mtpa) of LNG to the world markets.

Train 2 of the Cameron LNG liquefaction-export infrastructure project recently achieved substantial completion and is expected to commence commercial operations under Cameron LNG’s tolling agreements in the coming days. The facility began producing LNG from Train 2 in December 2019.

Train 1 began commercial operations in August 2019 and Train 3 remains on schedule and is expected to start commercial operations in the third quarter of 2020.

Sempra Energy’s share of full-year run-rate earnings from the first three trains at Cameron LNG are projected to be between $400 million and $450 million annually after all three trains achieve commercial operations under Cameron LNG’s tolling agreements.

The potential Port Arthur LNG liquefaction-export infrastructure project under development in Jefferson County, Texas, continues to advance with a final investment decision targeted for the third quarter of 2020.

In January, Sempra LNG signed an interim project participation agreement (IPPA) with Aramco Services Company, a unit of Saudi Aramco, for the proposed Port Arthur LNG project. The IPPA represents another milestone for both companies after having signed a heads of agreement in May 2019 for the potential purchase of 5 mtpa of LNG and a 25 percent equity investment in the project.

In December 2018, Port Arthur LNG entered into an agreement with Polish Oil & Gas Company for the sale and purchase of 2 mtpa of LNG per year.

A final investment decision for the Energía Costa Azul (ECA) LNG liquefaction-export infrastructure project, under development in Baja California, Mexico, is expected later this quarter. TechnipFMC has been selected as the engineering, procurement and construction (EPC) contractor for the proposed project. ECA LNG expects to sign a lump-sum, turn-key EPC contract for Phase 1 of the project in the coming days.