Sempra Energy and Total have signed an MoU that details the framework for co-operator in the development of North American LNG export projects.
The scope of the MoU covers continuing the development of the Cameron LNG liquefaction-export project in Louisiana and Energía Costa Azul liquefaction-export project in Baja California, Mexico.
The MoU between the two companies envisages Total potentially contracting for up to nine million tonnes per annum of LNG offtake across Sempra Energy's LNG export development projects on the US Gulf Coast and west coast of North America, specifically Cameron LNG Phase 2 and Energia Costa Azul LNG. Total may also acquire an equity interest in ECA LNG.
Jeffrey Martin, CEO of Sempra Energy, says: 'The US is increasing its global leadership position in the production of oil and natural gas. In large measure, the next step in fulfilling our country's energy potential is the development of critical export infrastructure for LNG.
'Sempra Energy has a long-term goal of developing more than 45 million tonnes per annum of LNG export capacity in North America. That is why our relationship with Total is so important. We plan to leverage the competitive strengths of both companies to accelerate development of North American LNG exports to global markets.'
Patrick Pouyanné, chairman and CEO of Total, adds: 'We are pleased to collaborate with Sempra Energy and the other Cameron LNG co-owners to extend the Cameron LNG project and to further enhance its competitiveness, but also participate in the development of export capacity on the west coast of Mexico, which will benefit from synergies with existing infrastructure and from a significant shipping cost advantages for customers in Asia.'
The $10 billion phase 1 of the Cameron LNG JV liquefaction-export projects includes three liquefaction trains with 14 Mtpa of export capacity under construction in Louisiana. Phase 2 of the project comprises up to two additional liquefaction trains and up to two additional LNG storage tanks with nine Mtpa of capacity.
ECA phase 1 is a one-train facility with an expected total export capacity of 2.5 Mtpa, utilising the existing LNG receipt terminal's tanks, loading arms and berth. ECA phase 2 is expected to have additional export capacity of 12 Mtpa of LNG.
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