Cameron LNG Terminal

From Global Energy Monitor
This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.
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Cameron LNG is a liquefied natural gas (LNG) export terminal situated along the Calcasieu Channel in Hackberry, Louisiana. It has six trains. The first phase of the terminal, comprising three liquefaction trains, became fully operational in August 2020. A second phase expansion project has been proposed, which included a fourth and fifth train.

In January 2022, Train 5 was cancelled by the developers alongside amendments to the proposed Train 4.[1]

Location

It is located 18 miles from the Gulf of Mexico and within 35 miles of five major interstate pipelines that serve nearly two-thirds of all U.S. natural gas markets.

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Import Terminal

  • Operator: Cameron LNG LLC[2]
  • Owner: Cameron LNG LLC[2]
  • Parent company: Sempra LNG 50.2%, Mitsui Group 16.6%, TotalEnergies 16.6%, Mitsubishi Corporation [11.62%]; NYK [4.98%][2]*

[3]

  • Location: Hackberry, Louisiana, United States
  • Coordinates: 30.035471,-93.3383568 (approximate)
  • Capacity: 11.3 mtpa, 1.65 bcfd[4]
  • Status: Mothballed[4]
  • Type: Import
  • Start Year: 2009[4]


*Ownership of Cameron LNG LLC is: Sempra LNG [50.2%]; Mitsui Group [16.6%]; TotalEnergies [16.6%]; Japan LNG Investment [16.6%], which is a joint venture of Mitsubishi Corporation (70%) and NYK (30%).[5] Note: KKR is a stakeholder in Sempra Energy's Sempra Infrastructure Partners.[6]

Export Terminal Phase 1 Train 1

  • Operator: Cameron LNG LLC[2]
  • Owner: Cameron LNG LLC[2]
  • Parent company: Sempra LNG 50.2%, Mitsui Group 16.6%, TotalEnergies 16.6%, Mitsubishi Corporation [11.62%]; NYK [4.98%][2]*

[7]

  • Location: Hackberry, Louisiana, United States
  • Coordinates: 30.035471,-93.3383568 (approximate)
  • Capacity: 4.5 mtpa[8][9][2]
  • Status: Operating[10]
  • Type: Export
  • Trains: 1[9]
  • Cost: US$10 billion (all of Phase 1, Trains 1-3)[11]
  • Start Year: 2019[9]


*Ownership of Cameron LNG LLC is: Sempra LNG [50.2%]; Mitsui Group [16.6%]; TotalEnergies [16.6%]; Japan LNG Investment [16.6%], which is a joint venture of Mitsubishi Corporation (70%) and NYK (30%).[5] Note: KKR is a stakeholder in Sempra Energy's Sempra Infrastructure Partners.[12]

Export Terminal Phase 1 Train 2

  • Operator: Cameron LNG LLC[2]
  • Owner: Cameron LNG LLC[2]
  • Parent company: Sempra LNG 50.2%, Mitsui Group 16.6%, TotalEnergies 16.6%, Mitsubishi Corporation [11.62%]; NYK [4.98%][2]*
  • Location: Hackberry, Louisiana, United States
  • Coordinates: 30.035471,-93.3383568 (approximate)
  • Capacity: 4.5 mtpa[8][9][2]
  • Status: Operating[10]
  • Type: Export
  • Trains: 1[9]
  • Cost: US$10 billion (all of Phase 1, Trains 1-3)[11]
  • Start Year: 2020[2]


*Ownership of Cameron LNG LLC is: Sempra LNG [50.2%]; Mitsui Group [16.6%]; TotalEnergies [16.6%]; Japan LNG Investment [16.6%], which is a joint venture of Mitsubishi Corporation (70%) and NYK (30%).[5] Note: KKR is a stakeholder in Sempra Energy's Sempra Infrastructure Partners.[12]

Export Terminal Phase 1 Train 3

  • Operator: Cameron LNG LLC[2]
  • Owner: Cameron LNG LLC[2]
  • Parent company: Sempra LNG 50.2%, Mitsui Group 16.6%, TotalEnergies 16.6%, Mitsubishi Corporation [11.62%]; NYK [4.98%][2]*
  • Location: Hackberry, Louisiana, United States
  • Coordinates: 30.035471,-93.3383568 (approximate)
  • Capacity: 4.5 mtpa[8][2]
  • Status: Operating[13]
  • Type: Export
  • Trains: 1
  • Start Year: 2020[9][2]
  • Cost: US$10 billion (all of Phase 1, Trains 1-3)[11]
  • Financing: US$7.7 billion in debt financing across three tranches and agreed in 2014: US$2.5 billion loan from Japan Bank for International Cooperation; a US$2 billion loan from a consortium of international banks (loan insured by Nippon Export and Investment Insurance); a US$3.265 billion loan from international banks[2]


*Ownership of Cameron LNG LLC is: Sempra LNG [50.2%]; Mitsui Group [16.6%]; TotalEnergies [16.6%]; Japan LNG Investment [16.6%], which is a joint venture of Mitsubishi Corporation (70%) and NYK (30%).[5] Note: KKR is a stakeholder in Sempra Energy's Sempra Infrastructure Partners.[12]

Export Terminal Phase 2 Train 4

  • Operator: Cameron LNG LLC[2]
  • Owner: Cameron LNG LLC[2]
  • Parent company: Sempra LNG 50.2%, Mitsui Group 16.6%, TotalEnergies 16.6%, Mitsubishi Corporation [11.62%]; NYK [4.98%][2]*
  • Location: Hackberry, Louisiana, United States
  • Coordinates: 30.035471,-93.3383568 (approximate)
  • Capacity: 6.75 mtpa[14]
    • Originally 5 mtpa[8]
  • Status: Proposed[8]
  • FID Status: Pre-FID (2024)[15]
    • Formerly Pre-FID (2023)[16]
  • Type: Export[8]
  • Trains: 1[17]
  • Start Year: 2027[18]
  • Financing: US$4 billion in debt financing is being sought, JPMorgan Chase is the financial advisor[20]


*Ownership of Cameron LNG LLC is: Sempra LNG [50.2%]; Mitsui Group [16.6%]; TotalEnergies [16.6%]; Japan LNG Investment [16.6%], which is a joint venture of Mitsubishi Corporation (70%) and NYK (30%).[5] Note: KKR is a stakeholder in Sempra Energy's Sempra Infrastructure Partners.[12]

Export Terminal Phase 2 Train 5

  • Operator: Cameron LNG LLC[2]
  • Owner: Cameron LNG LLC[2]
  • Parent company: Sempra LNG 50.2%, Mitsui Group 16.6%, TotalEnergies 16.6%, Mitsubishi Corporation [11.62%]; NYK [4.98%][2]*
  • Location: Hackberry, Louisiana, United States
  • Coordinates: 30.035471,-93.3383568 (approximate)
  • Capacity: 5 mtpa[8]
  • Status: Cancelled
  • Type: Export[8]
  • Start year: 2026[19]
  • Trains: 1[17]


*Ownership of Cameron LNG LLC is: Sempra LNG [50.2%]; Mitsui Group [16.6%]; TotalEnergies [16.6%]; Japan LNG Investment [16.6%], which is a joint venture of Mitsubishi Corporation (70%) and NYK (30%).[5] Note: KKR is a stakeholder in Sempra Energy's Sempra Infrastructure Partners.[12]

Ownership

Cameron LNG is a wholly owned subsidiary of Sempra Energy (SRE), a California-based natural gas distribution and marketing company.[21] A full breakdown of ownership includes Sempra LNG 50.2%, Mitsui Group 16.6%, Total 16.6%, Mitsubishi Corporation 11.6%, NYK Line 5.0%.[22][23]

Background

Construction at Cameron LNG import terminal started in August 2005 and commercial operations began in July 2008.[21]

On January 17, 2012, the U.S. Department of Energy authorized Cameron LNG to export liquefied natural gas. The permit allows Cameron to ship up to 1.7 billion cubic feet a day of LNG to countries possessing free-trade agreements with the U.S. The permit is valid for 20 years after the first export shipment.[24]

In February 2014, the DOE allowed Cameron LNG to export gas to countries that do not have a free-trade agreement with the United States.[25]

In June 2014, the U.S. House of Representatives passed a bill 266 to 150 that will speed up the process of liquefied natural gas exports. The bill, sponsored by Rep. Cory Gardner (R-CO), allows the Department of Energy a mere "30 days to approve LNG exports to non-Free Trade Agreement countries after an environmental review of the LNG facilities.[26]

In October 2014, Cameron LNG broke ground for construction on the terminal's new LNG export facilities.[27] Once construction is finished, Cameron will be able to import as well as export LNG.

In February 2015, Cameron LNG began the pre-filing review process with Federal Energy Regulatory Commission (FERC) for the site's expansion of the company's existing "three-train liquefaction export project, which includes two additional liquefaction trains (trains No. 4 and No. 5) and one additional full containment LNG storage tank."

FERC cleared a path for final approval to expand Cameron's capacity and storage on February 2016.[28]

By Fall of 2016 50% of the project's construction had been completed.[29] Phase I began commercial operations in August of 2019.[10]

Cameron LNG was expected to begin operations in 2019.[30]

Approximately US$4 billion in loans is expected to be needed to help finance the second phase expansion. JPMorgan Chase is Cameron LNG's financial advisor for the expansion.[31]

In January of 2020, Sempra Energy requested a six year extension for the permits for trains 4 and 5 that were planned to expire in May of 2020. The group expects a final investment decision to happen by second quarter 2021. The expansion is expected to take nearly 5 years to complete.[19]

In March 2020 Sempra spokesperson Katherine Hill said that "far fewer" workers were actively working on the expansion of the Cameron LNG Terminal due to COVID-19 and resulting restrictions on large gatherings.[32]

In April 2020, following FERC authorisation allowing the introduction of pipeline feed gas to train 3, Sempra announced that Cameron LNG has entered the final commissioning stage for Phase 1 of the project. The company believes that train 3 will begin commercial operations on schedule in the third quarter of 2020.[33]

In August 2020, Phase 1 of the project started full commercial operations with the start-up of the third and final liquefaction train. As it announced this, Sempra was also circumspect about the prospects of Phase II of the project: "The successful development and ultimate construction of Cameron LNG Phase 2 and Sempra Energy’s other LNG export projects currently under development are subject to a number of risks and uncertainties and there can be no assurance that any of these projects will be completed."[13]

On an investor call in May 2021, Sempra executives did not divulge specific timing for a final investment decision (FID) for the second phase of the project. They confirmed that initial design and technical work was continuing and commercial discussions with partners including Total and Mitsui were ongoing.[34]

In June 2021, Sempra executives announced that the company was scaling back the Phase II expansion from two LNG trains with 10 mtpa capacity to one train with 6 mtpa capacity. This new approach, which is undergoing preliminary front-end engineering and design work with studies scheduled to get underway later this year, will cost less and not require additional tanks or berths. Sempra LNG CEO Justin Bird said that FID could take place by the end of 2022.[17]

In May 2022, Sempra announced that it was expecting to take FID on the proposed expansion in 2023, which indicates the project is delayed with respect to earlier expectations.[35]

In November 2022, four Japanese firms announced plans to produce synthetic methane, or e-methane, at Cameron LNG and to transport it to Japan. The target production volume is 130,000 tons per year starting in 2030. The firms involved include Tokyo Gas, Osaka Gas, Toho Gas, and Mitsubishi.[36] In August 2023, Sempra joined these companies in the e-methane venture.[37]

In March 2023, FERC approved Sempra's revised plan for the Phase 2 expansion, which was reduced from 2 trains (10 mtpa) to 1 train (6.75 mtpa).[38]

In May 2023, Sempra was reportedly considering delaying Phase 2 of the project due to rising costs of labor.[39]

Contracts

Tokyo Gas announced March 2016 that it has signed a heads of agreement with Mitsubishi Corporation, a subsidiary of Diamond Gas International, for the sale and purchase of 200,000 tons a year year of LNG over 20 years from the Cameron LNG. The price for the LNG will be linked to the U.S. Henry Hub natural gas price.[40]

In November 2018, Sempra Energy signed a memorandum of understanding with Total S.A. to cooperate on developing North American LNG projects, with Total potentially off taking 9 mtpa from Cameron LNG Phase 2 along with Energia Costa Azul LNG.[41]

In October 2019, Sempra Energy signed a memorandum of understanding with Mitsui & Co which could result in the Japanese company taking up to one-third of the available capacity from the planned second phase of the Cameron facility.[42]

In December 2022, Sempra entered a non-binding agreement with Entergy to provide renewable power to reduce the facility's Scope 2 emissions.[43]

In April 2022, TotalEnergies signed a heads of agreement with Cameron's other partners to expand the proposed Train 4 to 6.75 mtpa and to increase production from the existing 3 trains by 5% through debottlenecking.[14]

In May 2022, Sempra announced a non-binding heads of agreement (HOA) with Poland's PGNiG for about 2 mtpa of LNG from Cameron's Phase 2 over 20 years.[44]

In June 2022, Britain's INEOS Energy signed a 20-year sales and purchase agreement under which it would purchase 1.4 mtpa from either Sempra's Cameron LNG Phase 2 or Port Arthur LNG Terminal Phase 1 projects.[45]

In November 2022, Williams signed an HOA with Sempra to purchase 3 mtpa from Cameron LNG Phase 2 and Port Arthur LNG Terminal Phase 1.[46]

Opposition

Environmental groups, Gulf Restoration Network, RESTORE, and Sierra Club, in 2014 filed a request for rehearing and stay of FERC’s order granting authority to Cameron LNG to construct the proposed facility. They charged that FERC’s environmental analysis failed to adequately consider the effects of increased gas production and air pollution, as well as effect on nearby wetlands.[47]

Hurricane Laura Forces Shutdown

On August 25, 2020, Sempra was forced to shut down all operations at the terminal due to Hurricane Laura hitting Louisiana with 150 mile-per-hour winds. A week later, and having found minimal flooding and "no catastrophic wind damage", the company said it had begun the process to restore the facility's operations, though no timeline was given for when production would resume.[48]

Carbon capture and storage project

Similar to announcements in 2021 from other U.S. LNG terminal developers, Sempra has said it is planning a carbon capture and storage (CCS) project in Louisiana to lower the emissions profile of the Cameron facility. The proposed Hackberry CCS scheme would include three injection wells and 89 million metric tons (mmt) of storage capacity. The company believes that the CCS project would allow the Cameron terminal to achieve a 15% reduction in direct emissions.[17] Sempra and its partners signed an agreement in May 2022 for the development of the Hackberry Carbon Sequestration (HCS) project at Cameron LNG.[49]

Articles and resources

References

  1. ↑ "https://www.energy.gov/sites/default/files/2022-02/Cameron%20LNG%20-%20Report%20of%20Changes%202-18-22.pdf" (PDF). Retrieved 2022-07-29. {{cite web}}: External link in |title= (help)CS1 maint: url-status (link)
  2. ↑ 2.00 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 International Group of Liquefied Natural Gas Importers (May 24, 2022). "Annual Report 2022 Edition" (PDF). GIIGNL. Retrieved July 11, 2022.{{cite web}}: CS1 maint: url-status (link)
  3. ↑ KKR. Sempra Energy Announces Agreement To Sell Non-Controlling Interest In Sempra Infrastructure Partners. April 5, 2021.
  4. ↑ 4.0 4.1 4.2 2019 World Gas Report International Gas Union, accessed August 2019
  5. ↑ 5.0 5.1 5.2 5.3 5.4 5.5 "Cameron LNG project | Mitsubishi Corporation". Mitsubishi Corporation. Retrieved 2022-07-29.
  6. ↑ KKR. Sempra Energy Announces Agreement To Sell Non-Controlling Interest In Sempra Infrastructure Partners. April 5, 2021.
  7. ↑ KKR. Sempra Energy Announces Agreement To Sell Non-Controlling Interest In Sempra Infrastructure Partners. April 5, 2021.
  8. ↑ 8.0 8.1 8.2 8.3 8.4 8.5 8.6 8.7 U.S. Liquefaction Capacity, Energy Information Administration, Nov. 3, 2020
  9. ↑ 9.0 9.1 9.2 9.3 9.4 9.5 2020 World LNG Report, page 102, International Gas Union, April 27, 2020
  10. ↑ 10.0 10.1 10.2 Laxman Pai, Cameron LNG Begins Commercial Service Marine Link, August 20, 2019.
  11. ↑ 11.0 11.1 11.2 Reuters Staff. "Cameron LNG seeks more time to build second phase at Louisiana export plant". U.S. Retrieved 2023-10-12. {{cite news}}: |last= has generic name (help)
  12. ↑ 12.0 12.1 12.2 12.3 12.4 KKR. Sempra Energy Announces Agreement To Sell Non-Controlling Interest In Sempra Infrastructure Partners. April 5, 2021.
  13. ↑ 13.0 13.1 Jessica Jaganathan, Sempra Energy says Cameron LNG plant launches full commercial operations, Reuters, Aug. 11, 2020.
  14. ↑ 14.0 14.1 Paraskova, Tsvetana. TotalEnergies To Boost LNG Capacity At Louisiana Project. OilPrice. April 11, 2022.
  15. ↑ Sierra Club. US LNG Export Tracker. Accessed October 2023.
  16. ↑ GIIGNL. The LNG Industry: GIIGNL Annual Report 2023. July 14, 2023.
  17. ↑ 17.0 17.1 17.2 17.3 Caroline Evans, Sempra Scaling Back Cameron LNG Expansion, Taking Breather on Port Arthur, but Mexico Top Priority, Natural Gas Intelligence, Jun. 30, 2021
  18. ↑ Cameron LNG. Cameron LNG Amended Expansion Project. February 2022.
  19. ↑ 19.0 19.1 19.2 Kristen Mosbrucker, Cameron LNG seeking 6-year extension on proposed southwest Louisiana expansion The Advocate, January 28, 2020
  20. ↑ Cameron LNG Phase 2 IJGlobal, accessed May 2020.
  21. ↑ 21.0 21.1 "One of the First New Liquefied Natural Gas Receipt Terminals in North America," Cameron LNG: About Us, accessed April 2012.
  22. ↑ The LNG Industry: Annual Report 2020, page 38, International Group of Liquefied Natural Gas Importers, accessed April 29, 2020
  23. ↑ International Group of Liquefied Natural Gas Importers (May 24, 2022). "Annual Report 2022 Edition" (PDF). GIIGNL. Retrieved July 11, 2022.{{cite web}}: CS1 maint: url-status (link)
  24. ↑ Ben Lefebvre, "Cameron LNG Receives Liquefied-Natural-Gas Export Permit," Dow Jones Newswires, January 20, 2012.
  25. ↑ Hannah Northey, "DOE approves 6th export application," E&E, February 11, 2014.
  26. ↑ "U.S. House Approves Faster LNG Exports" Brandon Baker, EcoWatch, June 26, 2014.
  27. ↑ "Cameron LNG Liquefaction Project Breaks Ground In Louisiana" PRNewswire, October 23, 2014.
  28. ↑ "Cameron LNG expansion passes Ferc test" Upstream, February 16, 2016.
  29. ↑ "Building for the Future: Issue 6" Cameron LNG, Fall 2016.
  30. ↑ Sempra still sees 2019 startup for three Cameron LNG trains LNG World News, March 2019.
  31. ↑ Cameron LNG Phase II Transaction Data IJGlobal, Oct. 30, 2019.
  32. ↑ Slowdown in construction of new North American liquefaction supply expected amid outbreak, S&P Platts Global, Mar. 17, 2020
  33. ↑ Callum O'Reilly, Cameron LNG enters final commissioning stage of Train 3 Hydrocarbon Engineering, Apr.23, 2020
  34. ↑ Harry Weber, Port Arthur LNG final investment decision likely to be delayed to 2022: Sempra, S&P Global, May 5, 2021
  35. ↑ "Sempra eyes Cameron LNG expansion FID in 2023". LNG Prime. 2022-05-06. Retrieved 2022-05-10.
  36. ↑ LNG Prime Staff (2022-11-30). "Four firms plan to liquefy e-methane at Cameron LNG and ship it to Japan". LNG Prime. Retrieved 2023-08-28.
  37. ↑ LNG Prime Staff (2023-08-31). "Sempra joins Japanese quartet to ship liquefied e-methane from Cameron LNG". LNG Prime. Retrieved 2023-09-01.
  38. ↑ LNG Prime Staff (2023-03-22). "Sempra gets OK for amended Cameron LNG expansion project". LNG Prime. Retrieved 2023-08-28.
  39. ↑ 1012 Industry Report. Sempra considers delaying Cameron LNG Phase 2 due to ‘cost headwinds’. May 9, 2023.
  40. ↑ "Heads of agreement signed for sale and purchase of liquefied natural gas from the Cameron LNG project," Tokyo Gas, Co., Ltd, March 2, 2016.
  41. ↑ "Total and Sempra Energy sign Memorandum of Understanding for Development of North American LNG Export Projects". TotalEnergies. November 5, 2018.{{cite web}}: CS1 maint: url-status (link)
  42. ↑ Sempra signs MoU with Mitsui for Cameron LNG 2Sempra signs MoU with Mitsui for Cameron LNG 2 IJGlobal, Oct. 29, 2019.
  43. ↑ LNG Prime Staff (2022-12-08). "Cameron LNG, Entergy advance renewable power deal". LNG Prime. Retrieved 2023-08-28.
  44. ↑ Poland's PGNiG secures LNG supply from U.S. firm Sempra. Reuters. May 16, 2022.
  45. ↑ "Britain's Ineos signs 20-yr LNG deal with Sempra Infrastructure". Reuters. 2022-06-22. Retrieved 2022-07-07.
  46. ↑ Sempra. Sempra Infrastructure and Williams Announce Preliminary Agreements for LNG Offtake, Gas Supply, and Associated Pipeline Projects. November 15, 2022.
  47. ↑ "Environmental Groups Challenge Cameron LNG FERC Order; Cameron LNG Says Too Late" LNGLawBlog.com, Jul 24, 2014.
  48. ↑ Harry Weber, Cheniere's Sabine Pass works to resume production at US facility following storm S&P Global, Aug. 31 2020
  49. ↑ "TotalEnergies SE UK Regulatory Announcement: TotalEnergies: United States: Launch of Carbon Capture Project to Decarbonize Liquefied Natural Gas Production at Cameron LNG". www.businesswire.com. 2022-05-23. Retrieved 2022-05-23.

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