Sempra: FID on Cameron LNG expansion project could be postponed

Cameron LNG export project (Image courtesy of Cameron LNG)
Cameron LNG export project (Image courtesy of Cameron LNG)

San Diego-based energy company and LNG operator Sempra Energy said that a final investment decision on the proposed Cameron LNG expansion project could be delayed beyond the first half of 2017.

Sempra and its partners in the Cameron LNG export project are currently building the first three liquefaction trains with a nameplate capacity of 13.9 million tonnes per annum (Mtpa) in Hackberry, Louisiana.

The Cameron expansion project, which would include up to two additional liquefaction trains raising the project’s capacity to 24.92 Mtpa, has received approvals from both the U.S. FERC and the Department of Energy.

However, the final investment decision could be postponed as one of the partners “indicated to Sempra Energy and the other partners that it currently does not want to invest additional capital in Cameron LNG JV with respect to the expansion,” Sempra said in a 10-Q filing with the U.S. Securities and Exchange Commission.

Cameron LNG is a joint venture owned by affiliates of Sempra Energy, Engie, Mitsui & Co. and Japan LNG Investment, a joint venture formed by affiliates of Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha.

“As a result, alternatives are being developed and negotiated with all partners to allocate the required equity, commitments and guarantees to the remaining three partners that are supportive of the development of the expansion and to secure the consent of all of the partners to allow the expansion to proceed,” Sempra said.

These activities have contributed to delays in developing firm pricing information and securing customer commitments, Sempra said, adding that failure to obtain the unanimous consent of all Cameron LNG partners to move forward on the expansion project or to obtain the necessary customer commitments could further delay this project.

Sempra expects the first three trains of the LNG export project to achieve commercial operation in 2018, and have the first year of full operations in 2019.

The total cost of the facility, including the cost of the original import facility, is estimated to be approximately $10 billion.

 

LNG World News Staff

Share this article

Follow LNG World News

Events>

<< Apr 2017 >>
MTWTFSS
27 28 29 30 31 1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30

CWC World LNG & Gas Series: Americas Summit

The Premier Meeting Place in the Americas for LNG & Gas Supply Chain

read more >

Flame 2017

Join 650+ gas producers and consumers, infrastructure providers, traders and regulators at Europe’s largest annual industry meeting, Flame 2017.

read more >

ConferenzaGNL 2017

ConferenzaGNL will take place together with ExpoGNL, a two-days exhibition of projects, land and maritime technologies, cryogenic components…

read more >

Gas-To-Power World Congress 2017

GTP17 is recognised as being unique in convening stakeholders along the power generation value chain…

read more >