Sempra and Mitsui are already joint owners of the Cameron LNG phase 1 project


Mitsui is one of the joint owners of the Cameron LNG phase 1 project. Photo: courtesy of Sempra Energy.

Sempra Energy has signed a memorandum of understanding (MOU) with Japanese conglomerate Mitsui & Co. to enable the participation of the latter in the Cameron LNG phase 2 project in Louisiana.

The non-binding MOU also covers a future expansion of the Energía Costa Azul (ECA) LNG project located in Baja California, Mexico.

According to Sempra Energy, the MOU outlines the partners’ mutual support for the development of Cameron LNG phase 2. Included in this is the Japanese group’s purchase of up to one-third of the available capacity of the US LNG project, and also the potential offtake of nearly one million tonnes per annum (Mtpa) of LNG and equity stake in a future expansion of ECA LNG.

Sempra LNG president Justin Bird said: “This agreement signals continued momentum in the growing U.S. liquefied natural gas (LNG) export market, while reinforcing the unique competitive advantage that Sempra offers customers seeking LNG export capabilities from the Gulf Coast, as well as the West Coast of North America.

“We are pleased to expand our relationship with Mitsui and advance the development of both LNG projects.”

Sempra and Mitsui signed an agreement last November for ECA LNG phase 1

In November 2018, Sempra LNG signed an agreement with the Japanese firm for the ECA LNG phase 1. The parties are currently engaged in negotiations and finalisation of a definitive 20-year LNG sales-and-purchase deal for the potential offtake of 0.8Mtpa of LNG from the ECA LNG phase 1 project.

Mitsui managing officer and Energy Business Unit II chief operating officer Motoyasu Nozaki said: “We are pleased to further expand our strategic relationship with Sempra in a broader range of opportunities. This agreement will contribute to expanding Mitsui’s uniquely diversified supply portfolio worldwide by utilizing the strengths and capabilities of both companies.”

In August 2019, Sempra LNG started commercial operations at train 1 of the Cameron LNG project. Phase 1 of the LNG project being built in Hackberry will see the installation of three liquefaction trains with a total capacity of nearly 12 million tonnes per annum (Mtpa) of LNG.

Mitsui is one of the joint owners of the Cameron LNG project phase 1. The second phase of the project, which has been authorised by the US Federal Energy Regulatory Commission (FERC), will have two more two additional liquefaction trains and up to two more LNG storage tanks.

The ECA LNG project is being developed by Sempra’s subsidiary IEnova. Phase 1 of the Mexican LNG project includes a single liquefaction train having an export capacity of approximately 2.4 Mtpa.

Future expansion of the ECA LNG project will see the installation of additional trains with an expected export capacity of around 12Mtpa.