Sempra Energy said that its subsidiary Cameron LNG has received authorization from the 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.
“We are pleased to have reached this important milestone successfully and to be one step closer to starting construction later this year,” said Octavio M.C. Simoes, president of Sempra LNG. “The broad support and positive feedback from the community has been an integral part of our success in the developing and permitting of the project.”
Subject to a final investment decision to proceed by each party, finalization of permits, project financing and other customary conditions, 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, Mitsubishi Corporation [through a related company jointly established with Nippon Yusen Kabushiki Kaisha (NYK)] and Mitsui, 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.
Press Release, June 20, 2014