Sempra, Mitsui MOU For Development Of North American LNG Export Projects

Sempra Energy announced today it has entered a memorandum of understanding with Mitsui for Mitsui's participation in the Cameron LNG Phase 2 project in Louisiana, and a future expansion of the Energía Costa Azul LNG project in Baja California, Mexico.

The memorandum of understanding is non-binding and focuses on the continued mutual support for the development of Cameron LNG Phase 2, including Mitsui's purchase of up to one-third of the available capacity of the project. Also included is a Mitsui offtake of approximately 1 million tonnes per annum of LNG and equity participation in a future expansion of Energía Costa Azul LNG project

Train 1 of the Cameron LNG Phase 1 project started commercial operations in August 2019. Trains 2 and 3 are expected to begin LNG production in the first quarter and second quarter of 2020, respectively. Cameron LNG Phase 2, which has all necessary permits from the Federal Energy Regulatory Commission, encompasses up two additional liquefaction trains and up to two additional LNG storage tanks. Mitsui is also an equity owner of Cameron LNG the development company for Cameron LNG Phase 1 and Phase 2.

Energía Costa Azul LNG is being developed with IEnova, Sempra's subsidiary in Mexico. Phase 1 of the project includes one liquefaction train with an export capacity of approximately 2.4 Mtpa. Energía Costa Azul LNG future expansion would include additional trains with an expected export capacity of approximately 12 Mtpa.

Last November, Sempra LNG and Mitsui entered into a heads of agreement and are currently working to negotiate and finalize a definitive 20-year LNG sales-and-purchase agreement for the potential purchase of 0.8 Mtpa of LNG from the Energía Costa Azul LNG Phase 1 project.