Sempra Energy’s New US Gulf Coast LNG Terminal Begins Commercial Operations

Sempra LNG, a subsidiary of Sempra Energy, said that its Cameron liquefied natural gas (LNG) receipt terminal near Lake Charles, Louisiana, has successfully completed performance testing and has begun commercial operations. Over the past month, start-up and commissioning activities have been completed, including the arrival of the facility’s first two LNG commissioning cargoes and obtaining the approval to commence operations from the Federal Energy Regulatory Commission.

“With today’s announcement, our LNG business now has two fully operational North American receipt terminals with the unique ability to serve suppliers in both the Atlantic and Pacific markets,” said Donald E. Felsinger, chairman and chief executive officer of Sempra Energy. “This is a business supported by long term contracts that will provide shareholders with predictable cash flows well into the future.”

Sempra LNG owns 100% of the Cameron LNG facility and has sold 40% of its processing capacity to Eni S.p.A under a 20-year terminal services agreement. Last month, Sempra LNG announced it had signed a flexible agreement to purchase up to 50 cargoes from Ras Laffan Liquefied Natural Gas Company Limited 3 (RL 3), an affiliate of RasGas Company Limited (RasGas). The agreement allows cargoes to begin August 1, 2009, through December 31, 2010. Each cargo could contain up to 4.8 billion cubic feet of natural gas.

“We’re proud of the milestones achieved at Cameron LNG, completing construction, successfully meeting performance standards and beginning commercial operations in time to support the recently announced agreement with RasGas and the existing capacity agreement with Eni,” said Darcel L. Hulse, president and chief executive officer of Sempra LNG. “We plan to expand on this success by continuing to negotiate with other parties interested in acquiring either long- or short-term capacity at Cameron LNG.”

Cameron LNG’s first cargo arrived June 21, 2009 aboard BP Plc’s British Diamond, an LNG carrier bringing supplies from Trinidad. A second LNG ship, BP’s British Emerald, arrived at the terminal June 30 with a cargo from Trinidad. Cameron LNG is capable of processing 1.5 billion cubic feet per day (Bcf/d) of natural gas.

Sempra LNG’s other LNG receipt terminal, Energía Costa Azul, is located in Baja California, Mexico, and commenced operations in May 2008. Energía Costa Azul is the first LNG receipt terminal on the west coast of North America and is capable of processing 1Bcf/d.