Cameron LNG Launches Production

Sempra Energy announced May 14 that production has launched at its Cameron LNG project.

The output at the first liquefaction train at the Louisiana export terminal comes a month after the Texas-based company said it aimed to launch LNG production “in earnest” this quarter.

Phase 1 of the project, which includes three 4mn mt/yr liquefaction trains, has a projected export capacity of 12mn mt/yr. Expansion is possible, with another two trains adding a total 9.97mn mt/yr.

Sempra is the operator and 50.2% owner of the $10bn facility. Partners include Total, Mitsui, and Japan LNG Investment. The latter is a joint venture of Mitsubishi and Nippon Yusen Kabushiki Kaisha, representing Asian LNG trade and shipping capability.

"Reaching this important milestone of first LNG production is truly a credit to the team at Cameron LNG and the work they've done to reach this point," said Sempra LNG CEO Lisa Glatch. "Cameron LNG expects to load cargoes in the coming weeks – another major step forward to bringing cleaner, affordable energy to global markets."

Cameron LNG Phase 1 is one of five LNG export projects being developed by Sempra in North America. Cameron LNG Phase 2, already authorised by the Federal Energy Regulatory Commission (FERC),  could include up to two additional liquefaction trains and up to two additional LNG storage tanks. Other projects are Port Arthur LNG in Texas, which recently was approved by FERC; and Energia Costa Azul (ECA) LNG Phase 1 and Phase 2 in Mexico.

However, global gas markets are low at present, with the legendary Asian thirst for LNG satisfied and spot prices for delivery in Asia dipping below those in the already depressed northwest European markets.