Sempra Energy: On Track to Complete Louisiana LNG Facility in 2019

---

Researched by Industrial Info Resources (Sugar Land, Texas)--The first quarter of this year was an important one for Sempra Energy (NYSE:SRE) (San Diego, California). The company closed on its $9.45 billion acquisition of Texas power utility Oncor in March. Sempra also made progress on its $10 billion Cameron liquefied natural gas (LNG) project in Hackberry, Louisiana. Industrial Info is tracking $26.1 billion in active Sempra projects.

At the company's recent earnings conference call, Sempra executives discussed the progress being made on the Cameron project, which will have three 5 million-metric-ton-per-year liquefaction trains. Construction on the project began in late 2014. Chief Executive Officer Jeff Martin said, "We're making great progress on Cameron trains 1 through 3. To be clear, this is one of our top priorities. We continue to expect all three trains to be producing LNG in 2019." The engineering, procurement and construction (EPC) firm is a consortium of Chicago Bridge & Iron Company (NYSE:CBI) (CB&I) (The Hague, Netherlands) and Chiyoda Corporation (Yokohama, Japan). Martin addressed the recent approval of the merger of CB&I and McDermott International Incorporated (NYSE:MDR) (Houston, Texas). "We're also pleased with the recent shareholder approval to combine McDermott and CB&I, which we believe improves our contractor's overall delivery capabilities and financial strength," he said. For more information, see Industrial Info's project report.

Sempra is growing its LNG footprint in other projects. The company is planning an LNG production and export facility in Port Arthur, Texas, with Woodside Petroleum Limited (Perth, Australia). The facility is planned for construction on the site of a previously planned LNG receiving and regasification terminal. Construction on the first train could begin next summer and be completed by the end of 2022. Construction on a second train could begin in 2021. Each train would process 1 billion cubic feet per day of natural gas to produce 6.75 million metric tons per year of LNG. Sempra has signed a memorandum of understanding with the Korea Gas Corporation (Daegu, South Korea) for the offtake from the plant. Each train has an estimated total investment value (TIV) of $3.5 billion. For more information, see Industrial Info's project reports on Train 1 and Train 2.

Sempra also is planning an LNG liquefaction plant at the site of a former regasification plant in Ensenada, Mexico, on the Baja California peninsula. The project would consist of installing two LNG liquefaction trains capable of producing a combined 12.4 million metric tons per year. Construction could begin in the summer of 2020 for completion in 2024. The project has an estimated TIV of $6.2 billion. For more information, see Industrial Info's project report.

While Sempra is expanding its energy footprint with LNG projects and its acquisition of Oncor, the company remains firmly rooted in its home state of California's power sector. Among Sempra's projects in the state is the 205-megawatt Great Valley Photovoltaic Solar Farm near Cantua Creek, California. Construction at the 1,600-acre site began in the first half of 2017, with Signal Energy Constructors (San Francisco, California) providing EPC work. The $410 million project is expected wrap up soon. For more information, see Industrial Info's project report.

Planned to kick off this quarter in California is the $480 million South Orange County Reliability Transmission Line project. The project includes replacing four segments of 138-kilovolt (kV), single-circuit transmission line with 230-kV, double-circuit line between the Capistrano and Talega substations. The project is planned to wrap up in the fourth quarter of 2019. For more information, see Industrial Info's project report.

Sempra reported net income of $347 million for first-quarter 2018, compared with $441 million in first-quarter 2017. Among the items listed as causing the decline in earnings was higher financing charges due to the Oncor acquisition.

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.