San Diego-based Sempra Energy and France’s Total signed a memorandum of understanding to join forces on the development of North American liquefied natural gas (LNG) export projects.
The scope of the memorandum covers continuing development of the Cameron LNG liquefaction-export project in Louisiana and Energía Costa Azul (ECA) liquefaction-export project in Baja California, Mexico, Sempra’s statement reads.
Under the framework set up by the deal Total could potentially contract approximately up to 9 million tonnes per annum (Mtpa) of LNG offtake across Sempra Energy’s LNG export development projects on the U.S. Gulf Coast and West Coast of North America, specifically Cameron LNG Phase 2 and ECA LNG.
Total, which already is a partner in the Cameron LNG joint venture with a 16.6-percent stake, also may acquire an equity interest in ECA LNG.
“This relationship with Sempra Energy will support our goal of building a diverse portfolio of LNG supply options,” said Patrick Pouyanné, chairman and CEO of Total.
The $10 billion Phase 1 of the Cameron LNG joint-venture liquefaction-export project includes three liquefaction trains with approximately 14 Mtpa of export capacity under construction in Louisiana. Commissioning of the first train is now underway and all three trains are expected to be producing LNG in 2019.
Phase 2 of the Cameron LNG project, previously authorized by the Federal Energy Regulatory Commission and being developed jointly by the Cameron LNG co-owners, encompasses up to two additional liquefaction trains and up to two additional LNG storage tanks with approximately 9 Mtpa of capacity.
ECA Phase 1 is a one-train facility with an expected total export capacity of 2.5 Mtpa, utilizing the existing LNG receipt terminal’s tanks, loading arms and berth. ECA Phase 2 is expected to have an additional export capacity of 12 Mtpa of LNG.