Sempra LNG has signed a Heads of Agreement that provides Tractebel LNG North America with up to one-third of the processing capacity of Sempra's Cameron LNG receipt terminal under development near Lake Charles, Louisiana.
The non-binding Heads of Agreement (HOA) contemplates finalizing a definitive 20-year capacity agreement by June 30, 2005.
Under the proposed agreement, Sempra would sell Tractebel between 325 million cubic feet per day (MMcfd) and 500MMcfd of throughput capacity in the company’s Cameron LNG receipt terminal.
Cameron LNG is located near the Gulf Coast along the Calcasieu River, about 15 miles south of Lake Charles. In April 2004, the Federal Energy Regulatory Commission authorized the project’s construction and operation. The project is fully permitted and is slated to begin construction later this year. Upon its completion in 2008, Cameron LNG will have an initial throughput capacity of 1.5 billion cubic feet per day of natural gas.
This agreement combines Tractebel’s considerable experience in importing LNG to the US with Sempra Energy’s expertise in developing major natural gas infrastructure, said Darcel Hulse, president of Sempra LNG.
Our joint efforts will help bolster North American gas supplies and provide energy customers with a reliable and competitively priced source of our nation’s environmentally preferred fossil fuel of choice.
Additional supply and capacity agreements involving Cameron LNG are being negotiated.