TotalEnergies to take stake in Cameron LNG's fourth train
TotalEnergies revealed on April 11 it would receive 16.6% of the offtake from the fourth train expansion of the 13.5mn metric tons/year Cameron LNG plant in Louisiana, under a preliminary agreement with its fellow shareholders.
The announcement comes after the HoA was disclosed by fellow shareholder Sempra Infrastructure last week. Cameron LNG's overall production capability is set to reach 20.9mn mt/yr, with its existing three trains gaining a 5% lift thanks to debottlenecking activities. TotalEnergies will also take on 25% of the projected debottlenecked capacity, which is currently estimated at around 675,000 mt/yr.
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The deal is subject to a final investment decision by all of the project's shareholders currently planned for 2023. The project is backed by Sempra Infrastructure (50.2%), TotalEnergies (16.6%), Mitsui & Co (16.6%) and Japan LNG Investment (16.6%). All shareholders will take fourth train LNG quantities in line with their shareholdings. All shareholders will take fourth train LNG quantities in line with their shareholdings.
TotalEnergies and Sempra Infrastructure have been building their energy strategic alliance with non-binding LNG agreements and cooperation at certain onshore and offshore renewable projects. Earlier in 2022, Sempra entered a non-binding MoU with Mexico's state-owned electric company to develop Vista Pacifico, a mid-scale LNG plant which would produce 3 to 4mn mt/yr of LNG. Under the MoU, TotalEnergies could off-take a third of future LNG production and will receive a minimum 16.6% equity stake in the project.
Company CEO and chairman Patrick Pouyanne noted the Cameron LNG facility was "ideally" situated to boost European LNG exports to meet increased demand for cleaner transition fuels that protect the continent's security of supply.
"We are pleased to take this new step with our partners to increase liquefaction capacity at Cameron LNG, a facility ideally located on the Atlantic basin for export to Europe," Pouyanne said. "In recent years, TotalEnergies has become the leading exporter of US LNG, most of which has been exported to Europe in recent times, contributing to the continent's security of energy supply. The expansion of Cameron LNG will contribute to our LNG growth strategy by investing in low-cost, long-term competitive LNG projects with lower greenhouse gas emissions."
The FEED contract for Cameron LNG's second phase has been launched two contractors - named by Sempra as Bechtel Energy and a partnership of JGC America and Zachry Industrial - bidding to become EPC supplier to the expansion development.