San Diego-based Sempra expects to announce a final investment decision (FID) for its Cameron LNG Phase 2 project in 2024, according to Justin Bird, the CEO of Sempra affiliate Sempra Infrastructure.

The FID would be subject to “definitive commercial arrangements, project financing and any needed regulatory extensions,” Bird said Nov. 3 during Sempra’s third quarter 2023 conference call with analysts.

“At Cameron Phase 2 we’re working with Bechtel on value engineering … and are continuing to conduct that exercise and expect that work to go through the end of the year,” Bird said. “The goal is to optimize the design and reduce the construction cost and project risk.”

Cameron Phase 2 will add one liquefaction train with a production capacity of 6.75 million tonnes per annum (mtpa) or around 0.89 Bcf/d. Additionally, debottlenecking activities at the three-train 12 mtpa (1.58 Bcf/d) Cameron LNG Phase 1 export facility in Hackberry, Louisiana, will boost production capacity there by up to 1 mtpa, Sempra said in its third quarter 2023 Securities and Exchange Commission (SEC) 10-Q filing.

The Cameron LNG site can accommodate additional trains beyond the one proposed under the Cameron LNG Phase 2 project, which partners Sempra Infrastructure, TotalEnergies, Mitsui & Co. and Japan LNG Investment.

For the potential expansion, Cameron LNG had previously received major permits, free trade (FT) and non-free trade agreement (FTA) approvals, which included up to two additional liquefaction trains and up to two additional full containment LNG storage tanks.

“The non-FTA approval for the proposed Cameron LNG Phase 2 project includes, among other things, a May 2026 deadline to commence commercial exports, for which we expect to request an extension,” Sempra said in the filing.

Port Arthur LNG in Texas

Sempra Infrastructure continues to move forward with the development of its Port Arthur LNG Phase 1 greenfield project on a site it owns in the vicinity of Port Arthur, Texas, located along the Sabine-Neches waterway.

Port Arthur Phase 1 will consist of two trains, two LNG storage tanks, a marine berth and associated loading facilities and related infrastructure and have a nameplate capacity of 13 mtpa (1.71 Bcf/d) and an initial offtake capacity of approximately 10.5 mtpa (1.38 Bcf/d). Sempra Infrastructure expects the first train to commence commercial operations in 2027 followed by the second train in 2028.

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A proposed Port Arthur Phase 2 will be of similar size as Port Arthur Phase 1. Sempra Infrastructure continues to progress activities around its development.

Energia Costa Azul LNG in Mexico

The Energia Costa Azul (ECA) LNG Phase 1 project, located north of Ensenada in Baja California, Mexico, and constructed at the site of Sempra Infrastructure’s existing ECA Regas facility, continues to move forward.

ECA Phase 1 will consist of one-train with a nameplate capacity of 3.25 mtpa (0.43 Bcf/d) and an initial offtake capacity of 2.5 mtpa (0.33 Bcf/d). Sempra Infrastructure has an 83.4% working interest and TotalEnergies has an 16.6% working interest.

Sempra doesn’t expect construction or operations of ECA Phase 1 to interrupt operations at the ECA Regas facility, and continues to target the summer of 2025 for the start of commercial operations.

ECA Phase 1 and Phase 2 will source gas from the U.S. to later be exported as LNG from Mexico.

“With this trend toward deglobalization, we see North America as one of the principal beneficiaries,” chairman and CEO Jeff Martin said during the conference call. “We also believe these trends support important new growth in Mexico, where in the first half of 2023, foreign direct investment has risen sharply by approximately 40% over the prior year comparable period. Just this year, Mexico has also surpassed China as America's largest trading partner.”

Sempra Infrastructure is also developing a second, large-scale natural gas liquefaction project at the site of its existing ECA Regas facility, which still has long-term regasification contracts for 100% of its capacity through 2028.

ECA Phase 2 will consist of two trains and one LNG storage tank and will have an export capacity of 12 mtpa (1.58 Bcf/d). Sempra Infrastructure expects construction of ECA Phase 2 would conflict with the current operations at the ECA Regas facility. Thus, any decision related to its development would rest on whether it would be more beneficial financially over the long-term to continue with its regasification services and existing contracts, Sempra said in the filing.

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