Sempra Energy subsidiary Cameron LNG received final authorization from the U.S. Department of Energy (DOE) to export domestically produced liquefied natural gas (LNG) from its proposed liquefaction facilities in Hackberry, La., to countries that do not have a free-trade agreement with the U.S.
“Today’s decision marks the last major regulatory hurdle for our Cameron LNG liquefaction-export project, clearing the way for execution of the largest capital project in Sempra Energy’s history,” said Debra L. Reed, chairman and CEO of Sempra Energy. “This landmark project will create thousands of jobs and economic benefits for Louisiana and the U.S. for decades to come, while delivering natural gas to America’s trading partners in Europe and Asia.”
The liquefaction-export project is expected to create approximately 3,000 on-site jobs, as well as several hundred jobs in Louisiana in support of the project, including fabrication, engineering and operational jobs. Nearly 200 full-time jobs will be added to the operations of Cameron LNG.
Earlier this year, Cameron LNG received authorization from the Federal Energy Regulatory Commission (FERC) to site, construct and operate the three-train liquefaction and export facilities. When fully completed, the project will have export capabilities of 12 million tonnes per annum of LNG, or approximately 1.7 billion cubic feet per day.
“With this final authorization from DOE and the previous permit granted by FERC, we will be able to remain on schedule and commence operations during 2018,” said Octavio M.C. Simoes, president of Sempra LNG.
Last month, Cameron liquefaction project sponsors, Sempra LNG, GDF SUEZ S.A., Mitsui & Co. Ltd., and Mitsubishi Corp., through a related company jointly established with Nippon Yusen Kabushiki Kaisha, each approved a final investment decision for the project. The total project cost will be approximately $10 billion.
Subject to other conditions to the equity and debt financing, Sempra Energy will have an indirect 50.2% ownership interest in Cameron LNG and the related liquefaction project, and the remaining portion will be owned by affiliates of GDF SUEZ, Mitsubishi, and Mitsui, each with 16.6% stakes.