Cameron LNG Applies to Expand Louisiana LNG Facility

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Researched by Industrial Info Resources (Sugar Land, Texas)--Earlier this week, Sempra Energy's (NYSE:SRE) (San Diego, California) Cameron LNG (Houston, Texas) announced that it had initiated the filing process with the U.S. Federal Energy Regulatory Commission (FERC) to expand the company's planned liquefied natural gas (LNG) production and export facility in Hackberry, Louisiana.

Construction of the $10 billion facility kicked off last summer after FERC authorized the construction and operation of the facility in June. The plant is being constructed at Sempra's existing LNG import and regasification terminal, which was built before the current gas shale boom, when the U.S. was expecting to import substantial quantities of LNG.

As currently planned, FERC authorized the facility to have three liquefaction trains, each with a capacity of 4.99 million tonnes per year, as well as an additional 160,000-cubic-meter LNG storage tank to accompany three existing tanks.

The proposed expansion calls for the construction of two additional liquefaction trains, which would increase production capacity by an additional 9.97 million tonnes per year, and an additional storage tank. If the expansion occurs, the facility will have a total liquefaction capacity of 24.92 million tonnes per year, or 3.53 billion cubic feet per day.

The company said that it also had filed with the U.S. Department of Energy (DoE) to export the natural gas from the expansion project to countries with a free trade agreement (FTA) with the U.S., and would file for permission to export to non-FTA countries in the coming months.

In February last year, the Cameron LNG facility became the sixth U.S. LNG facility to be granted approval from the DoE to export to non-FTA countries, although the license only allows for the export of 12 million tonnes per year, prompting Cameron to apply for additional export permission.

Cameron LNG is 50.2% owned by Sempra Energy, and minority partners include GDF Suez S.A. (La Defense, France), joint venture company Japan LNG Investment, and Mitsui & Company Limited (Tokyo, Japan), each of which owns a 16.6% share.

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