Sempra’s Cameron LNG Terminal Gets Green Light

 Sempra Energy informed yesterday that its subsidiary Cameron LNG has received authorization from the US Federal Energy Regulatory Commission (FERC) to site, construct and operate a natural gas liquefaction and export facility at the site of the company’s LNG receipt terminal in Hackberry, La.

The FERC permit is one of the last major regulatory approvals required to start construction on the $9 billion to $10 billion natural gas liquefaction facility.

“This is a landmark project that will bring economic prosperity and create thousands of jobs in Louisiana,” said Debra L. Reed, chairman and CEO of Sempra Energy. “Today’s approval is another important step in delivering natural gas to America’s trading partners abroad.”

The authorization approves the development of the three-train liquefaction facility that will provide an export capability of 12 million tonnes per annum of LNG, or approximately 1.7 billion cubic feet per day (Bcfd).

FERC also authorized a subsidiary of Sempra Energy to construct a 21-mile, 42-inch natural gas pipeline expansion of the Cameron Interstate Pipeline, new compressor station and ancillary equipment that will provide natural gas transportation for the liquefaction facilities.

Earlier this year, Cameron LNG was awarded conditional approval from the U.S. Department of Energy (DOE) to export LNG to non-free-trade-agreement (non-FTA) countries, including Japan and European nations.

Congressman Charles W. Boustany, Jr., M.D., (R-South Louisiana) reacted to news  by saying: “LNG is America’s energy future, and South Louisiana is leading the way. With a facility like the proposed Cameron LNG terminal in Hackberry, we have the capacity to become the global leader in LNG as demand continues to rise, providing jobs and opportunity to families across our state.”

If all plans go as planned, Sempra Energy will have an indirect 50.2-percent ownership interest in Cameron LNG and the related liquefaction project, the remaining portion will be owned by affiliates of GDF SUEZ S.A., Mitsubishi Corporation (through a related company jointly established with Nippon Yusen Kabushiki Kaisha (NYK)) and Mitsui & Co., Ltd., each with 16.6-percent stakes.

“The liquefaction project is an international collaboration with our partners from Japan and France to create a world-class facility to deliver reliable LNG supplies for more than 20 years to some of the largest LNG buyers in the world,” said E. Scott Chrisman, vice-president of commercial development for Sempra LNG and project leader for the Cameron LNG liquefaction project.