Sempra LNG, GDF Suez. Mitsui & Co. and Mitsubishi Corp.
have each approved a final investment decision for the
development, construction and operation of the gas
liquefaction and export project at Sempra Energy's Cameron
LNG terminal in Hackberry, Louisiana.
The total project cost is estimated at approximately $10
billion, including contribution of the existing Cameron LNG
of the new facilities
and financing cost.
The financing commitments for the project total $7.4
billion and will be provided by the Japan Bank for
International Cooperation (JBIC), Nippon Export and
Investment Insurance (NEXI) and a group of 29 commercial
"This represents one of the largest project financings in
the US," said Octavio M.C. Simoes, president of Sempra LNG.
"Today's commitments from our project
international banks put us one step closer to delivering
domestic natural gas to America's trading partners in Europe
and Japan," he added.
The three-train natural gas liquefaction facilities
will have an export
capability of 12 million tpy of liquefied natural gas
(LNG), or approximately 1.7 billion cubic feet/day.
Subject to final regulatory approval, satisfaction of
conditions of the initial equity funding and first
disbursement of the financing, construction
on the project
is expected to begin
later this year.
All three trains are expected to commence operations during
2018, with the first full year of operations in 2019.
"Over the past two years, we've worked collaboratively with
the project sponsors to stay on schedule throughout the
commercial, technical design, permitting and project
financing phases of the project," said E. Scott Chrisman,
vice president of commercial development for Sempra LNG.
"We appreciate the confidence our sponsors and the
international financial community placed in our project and
we look forward to starting construction
on the project this
year," he added.
Earlier this year, Cameron LNG received authorization from
the Federal Energy Regulatory Commission (FERC) to site,
construct and operate the liquefaction facilities
and was awarded
conditional authorization from the US Department of Energy
(DOE) to export LNG to non-free-trade-agreement (non-FTA)
countries, including Japan and Europe
A final authorization from DOE is expected later this year.
Subject to the finalization of permits and other conditions
to the equity and debt financing, Sempra Energy will have
an indirect 50.2% ownership interest in Cameron LNG and the
related liquefaction project
, and the remaining
portion will be owned by affiliates of GDF Suez, Mitsubishi
(through a related company jointly established with NYK)
and Mitsui, each with 16.6% stakes.