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Released October 30, 2019 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Earlier this week, Sempra Energy (NYSE:SRE) (San Diego, California) announced that it had signed a memorandum of understanding with Japan's Mitsui and Company (Tokyo) for the development of Phase II of its Cameron liquefied natural gas (LNG) production and export facility in Louisiana as well as for a future expansion of Sempra's Energia Costa Azul (ECA) LNG facility in Baja California del Norte, Mexico, further cementing the continued growth in natural gas exports from North America. Meanwhile, the U.S. Energy Information Administration (EIA) reports that natural gas exports from the U.S. doubled year over year in the first half of 2019 due to LNG exports and some growth from pipeline exports to Mexico, a trend which seems only set to continue.
Phase I of the Cameron LNG facility in Hackberry, Louisiana, kicked off construction in 2014 and includes three production trains, each capable producing 5 million tons per year. Train 1 began operating at full capacity in August, and trains 2 and 3 are expected to begin LNG production in the first and second quarters of 2020, respectively. Twenty-year tolling agreements have been signed for the full production capacity of Phase I. For more information, see Industrial Info's project report.
Phase II of the facility would include two additional trains, each with a capacity of 5 million tons per year, bringing the site's total production capacity to 25 million tons per year. Depending on how soon construction starts, the trains could be completed in 2023. For more information, see Industrial Info's project report on Phase II. The non-binding memorandum of understanding includes Mitsui's purchase of up to one-third of the offtake from Phase II.
Construction on Sempra's ECA LNG production facility in Mexico is expected to kick off next year, for completion in early 2022. The facility will have an initial production capacity of 2.4 million tons per year. Sempra says a future expansion of the ECA facility would add trains with an export capacity of approximately 12 million tons per year. Mitsui and Sempra are negotiating a 20-year sales agreement for the offtake of 800,000 tons per year of LNG from Phase I. The memorandum of understanding provides for the potential sale to Mitsui of 1 million tons per year of the offtake from Phase II. For more information, see Industrial Info's project reports on Phase I and Phase II. In a March 2019 press release, Sempra said, "ECA LNG will source natural gas from some of the fastest-growing production regions in the U.S. and provide our customers with a competitive advantage in accessing world markets, especially Asia."
The agreement about the further expansions of the two projects highlights the rise of U.S. natural gas exports, both as LNG and in increasing pipeline exports to Mexico. According to the EIA's Natural Gas Monthly, from January through June 2019, U.S. net natural gas exports averaged 4.1 billion cubic feet (Bcf/d) per day, more than double the average net exports of 2 billion Bcf/d seen in first-half 2018. LNG accounts for most of this rise. U.S. LNG exports in the first half of 2019 were 37% higher than the first half of 2018. In the same time, U.S. exports by pipeline to Canada remained flat, while pipeline exports to Mexico increased 5%.
In the first half of the year, in addition to Cameron LNG's Train 1 coming online, Cheniere Energy Incorporated (NYSE:LNG) (Houston, Texas) brought online its Corpus Christi Train 2 in Texas, which added 4.5 million tons of export capacity. For more information, see Industrial Info's project report.
More U.S. LNG export capacity will be added in the second half of the year. This includes some of the production trains at Kinder Morgan Incorporated's (NYSE:KMI) (NYSE:KMI) Elba Island facility in Georgia. The first phase of the project includes six trains that will have a combined production capacity of 2.5 million tons per year. The first train began production earlier this month, and Kinder Morgan said that three more trains would be brought into service this year. Kinder Morgan expects to have the remainder of Phase I and four Phase II units in service by mid-2020. The site will have total production capacity of 4 million tons per year. For more information, see Industrial Info's project reports on Phase I and Phase II.
Also in the second half of 2019, Train 1 of Freeport LNG's (Houston) Quintana Island development in Texas began production. The train has a production capacity of 5 million tons per year. For more information, see Industrial Info's project report. Construction on a second and third train, each of which will add 5 million tons per year of export capacity, is expected to be completed in the first half of next year. For more information, see Industrial Info's project reports on Train 2 and Train 3.
While U.S. LNG exports are growing substantially, the EIA says most natural gas exports occur by pipeline to Canada and Mexico. While exports to Canada remained flat in the first half the year, exports to Mexico average 4.9 Bcf/d, up 0.4 Bcf/d from first-half 2018. Among the recently completed pipeline projects from the U.S. to Mexico is TC Energy's (NYSE:TRP) (Calgary, Alberta) Sur de Texas-Tuxpan natural gas pipeline, which can carry up to 2.6 Bcf/d from the south of Texas, through the Gulf of Mexico, to Tuxpan in Veracruz, Mexico. The pipeline eventually will connect to the Tuxpan-Tula pipeline, which is planned for completion in 2022, taking gas to other high-demand centers in Mexico. For more information, see Industrial Info's project reports on the Sur de Texas-Tuxpan Pipeline and Tuxpan-Tula Pipeline.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Phase I of the Cameron LNG facility in Hackberry, Louisiana, kicked off construction in 2014 and includes three production trains, each capable producing 5 million tons per year. Train 1 began operating at full capacity in August, and trains 2 and 3 are expected to begin LNG production in the first and second quarters of 2020, respectively. Twenty-year tolling agreements have been signed for the full production capacity of Phase I. For more information, see Industrial Info's project report.
Phase II of the facility would include two additional trains, each with a capacity of 5 million tons per year, bringing the site's total production capacity to 25 million tons per year. Depending on how soon construction starts, the trains could be completed in 2023. For more information, see Industrial Info's project report on Phase II. The non-binding memorandum of understanding includes Mitsui's purchase of up to one-third of the offtake from Phase II.
Construction on Sempra's ECA LNG production facility in Mexico is expected to kick off next year, for completion in early 2022. The facility will have an initial production capacity of 2.4 million tons per year. Sempra says a future expansion of the ECA facility would add trains with an export capacity of approximately 12 million tons per year. Mitsui and Sempra are negotiating a 20-year sales agreement for the offtake of 800,000 tons per year of LNG from Phase I. The memorandum of understanding provides for the potential sale to Mitsui of 1 million tons per year of the offtake from Phase II. For more information, see Industrial Info's project reports on Phase I and Phase II. In a March 2019 press release, Sempra said, "ECA LNG will source natural gas from some of the fastest-growing production regions in the U.S. and provide our customers with a competitive advantage in accessing world markets, especially Asia."
The agreement about the further expansions of the two projects highlights the rise of U.S. natural gas exports, both as LNG and in increasing pipeline exports to Mexico. According to the EIA's Natural Gas Monthly, from January through June 2019, U.S. net natural gas exports averaged 4.1 billion cubic feet (Bcf/d) per day, more than double the average net exports of 2 billion Bcf/d seen in first-half 2018. LNG accounts for most of this rise. U.S. LNG exports in the first half of 2019 were 37% higher than the first half of 2018. In the same time, U.S. exports by pipeline to Canada remained flat, while pipeline exports to Mexico increased 5%.
In the first half of the year, in addition to Cameron LNG's Train 1 coming online, Cheniere Energy Incorporated (NYSE:LNG) (Houston, Texas) brought online its Corpus Christi Train 2 in Texas, which added 4.5 million tons of export capacity. For more information, see Industrial Info's project report.
More U.S. LNG export capacity will be added in the second half of the year. This includes some of the production trains at Kinder Morgan Incorporated's (NYSE:KMI) (NYSE:KMI) Elba Island facility in Georgia. The first phase of the project includes six trains that will have a combined production capacity of 2.5 million tons per year. The first train began production earlier this month, and Kinder Morgan said that three more trains would be brought into service this year. Kinder Morgan expects to have the remainder of Phase I and four Phase II units in service by mid-2020. The site will have total production capacity of 4 million tons per year. For more information, see Industrial Info's project reports on Phase I and Phase II.
Also in the second half of 2019, Train 1 of Freeport LNG's (Houston) Quintana Island development in Texas began production. The train has a production capacity of 5 million tons per year. For more information, see Industrial Info's project report. Construction on a second and third train, each of which will add 5 million tons per year of export capacity, is expected to be completed in the first half of next year. For more information, see Industrial Info's project reports on Train 2 and Train 3.
While U.S. LNG exports are growing substantially, the EIA says most natural gas exports occur by pipeline to Canada and Mexico. While exports to Canada remained flat in the first half the year, exports to Mexico average 4.9 Bcf/d, up 0.4 Bcf/d from first-half 2018. Among the recently completed pipeline projects from the U.S. to Mexico is TC Energy's (NYSE:TRP) (Calgary, Alberta) Sur de Texas-Tuxpan natural gas pipeline, which can carry up to 2.6 Bcf/d from the south of Texas, through the Gulf of Mexico, to Tuxpan in Veracruz, Mexico. The pipeline eventually will connect to the Tuxpan-Tula pipeline, which is planned for completion in 2022, taking gas to other high-demand centers in Mexico. For more information, see Industrial Info's project reports on the Sur de Texas-Tuxpan Pipeline and Tuxpan-Tula Pipeline.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
