The Federal Energy Regulatory Commission has signed off on a second liquefied natural gas export, the final federal approval needed for the project to move forward.
The new authorization allows San Diego-based Sempra Energy (NYSE: SRE) and its subsidiary, Houston-based Cameron LNG, to export LNG from a terminal near the Texas border i n Hackberry, Louisiana, to more lucrative non-free trade agreement areas like Asia and Europe.
Construction is expected to begin in late 2014 on the nearly $10 billion project with full operations starting in 2018, according to Sempra.
Sempra joins Houston-based Cheniere Energy Inc. (NYSE: LNG) as the only two companies with both FERC and U.S. Department of Energy authorization for LNG exports to non-FTA nations. Sempra received its DOE approval in February.
Cheniere is in the process of building a more than $10 billion LNG export terminal in Louisiana that has the capacity to export up to 3 billion cubic feet per day of natural gas.
Cameron LNG plans to build a three-train liquefaction facility that will provide an export capability of 1.7 billion cubic feet per day of LNG. FERC also authorized a subsidiary of Sempra to construct a 21-mile, 42-inch natural gas pipeline expansion of the Cameron Interstate Pipeline, a new compressor station and ancillary equipment that will provide natural gas transportation for the liquefaction facilities.
“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,” E. Scott Chrisman, vice-president of commercial development for Sempra LNG and project leader for the Cameron LNG liquefaction project, said in a statement.
Sempra has an indirect 50.2 percent ownership in Cameron LNG and the export project. The remaining portion is owned by affiliates of Paris-based GDF SUEZ S.A., Tokyo-based Mitsubishi Corp. and Tokyo-based Mitsui & Co. Ltd.
Sempra is a Fortune 500 energy services company with about 17,000 employees worldwide.
Article and Image sourced from bizjournals.com June 19th, 2014.