Sempra Progresses Cameron LNG Receiving Terminal

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Sempra LNG (San Diego, California), a business unit of Sempra Energy (NYSE:SRE ) (San Diego, California), has moved two steps closer to the construction phase of its proposed Cameron LNG Terminal. The project is located on the Calcasieu River about fifteen miles south of Lake Charles, Louisiana. The first step came just after the turn of the New Year, when Sempra LNG announced that it had awarded approximately $1.2 billion in engineering, procurement, and construction contracts (E+P+C) for the company's proposed LNG receiving terminals in Lake Charles, Louisiana, and Baja California, Mexico.

The $500 million E+P+C contract for the Cameron LNG terminal was awarded to a consortium comprised of Aker Kvaerner of Norway and Tokyo-based Ishikawajima-Harima Heavy Industries. The engineering work will take place at the company's Houston, Texas, office.

The E+P+C contract for Energia Costa Azul LNG terminal in Mexico was awarded to a consortium composed of Techint SA de CV of Mexico, Black & Veatch of Kansas City, Missouri, Mitsubishi Heavy Industries of Tokyo, and Vinci Construction Grands Projects of France.

The second step occurred on January 27, 2005, when Sempra LNG announced the signing of a Heads of Agreement (HOA) with Tractebel LNG North America LLC (Houston, Texas). Under the proposed HOA, Sempra LNG would sell Tractebel LNG between 325 million and 500 million cubic feet per day of natural gas throughput capacity at the proposed Cameron LNG terminal. The non-binding HOA could become a definitive 20-year capacity agreement by June 30, 2005. When completed in 2008, the Cameron LNG terminal will have an initial throughput capacity of 1.5 billion cubic feet per day of natural gas.

For details see associated September 17, 2003 news article - FERC Gives Cameron LNG Permission to Construct the First U.S. LNG Receiving Terminal in Over 20 Years

Sempra expects to complete these and other negotiations and begin construction on the Cameron LNG terminal in 2005, with first LNG cargo to be delivered in 2008. Sempra Energy has a total of three LNG facilities in planning for North America.

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