Cameron LNG Liquefaction-Export Facility Begins Production At Train 2

Press release as follows:

Sempra LNG, a subsidiary of Sempra Energy, today announced that Cameron LNG has begun producing liquefied natural gas (LNG) from the second liquefaction train of the export facility in Hackberry, Louisiana.  

"We are pleased to reach this important milestone in the development of the liquefaction facility," said Lisa Glatch, chief operating officer of Sempra LNG and board chair for Cameron LNG.

Train 2 and Train 3 are expected to commence commercial operations under Cameron LNG's tolling agreements in the first and third quarter of 2020, respectively. The facility's first liquefaction train started commercial operations in August 2019.

Phase 1 of the Cameron LNG export project includes the first three liquefaction trains that will enable the export of approximately 12 million tonnes per annum (Mtpa) of LNG, or approximately 1.7 billion cubic feet per day.

Cameron LNG is jointly owned by affiliates of Sempra LNG, Total, Mitsui & Co., Ltd., and Japan LNG Investment, LLC, a company jointly owned by Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha (NYK). Sempra Energy indirectly owns 50.2% of Cameron LNG.

Sempra Energy is also developing other LNG export projects in North America, including Cameron LNG Phase 2, previously authorized by the Federal Energy Regulatory Commission, which could include up to two additional liquefaction trains and up to two additional LNG storage tanks; Port Arthur LNG in Texas; and Energía Costa Azul (ECA) LNG Phase 1 and Phase 2 in Mexico.

Development of any of these LNG export projects is contingent upon obtaining binding customer commitments, completing the required commercial agreements, securing all necessary permits, obtaining financing, other factors, and reaching final investment decisions. In addition, the ability to successfully complete construction projects, such as the Cameron LNG export project, is subject to a number of risks and uncertainties.

Sempra LNG develops and builds natural gas liquefaction facilities and is pursuing the development of five strategically located LNG projects in North America with a goal of delivering 45 Mtpa of clean natural gas to the largest world markets.

See also:
Cameron LNG Commences Commercial Operations For Train 1 Of Liquefaction-Export Project

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McDermott, Chiyoda and Zachry Group Announce First Cargo from Freeport LNG Train 2

• First cargo of liquefied natural gas shipped from Train 2 of the Freeport LNG project
• Project team maintains a continuous focus on safety and quality
• Accomplishment is a precursor to substantial completion of Train 2

Below is the full press release from McDermott

HOUSTON, Dec. 18, 2019 McDermott International, Inc. along with its partners, Chiyoda International Corporation and Zachry Group, announced today that the first commissioning cargo of liquefied natural gas (LNG) has been shipped from Train 2 of the Freeport LNG project on Quintana Island in Freeport, Texas. Production of LNG from Train 2 was announced on Dec. 6 and today's announcement of first cargo is a precursor to substantial completion of Train 2.

"The ongoing momentum of this project has accelerated us past multiple accomplishments, including Train 1's introduction of feed gas, first liquid and first cargo. And, we are well on our way toward commercial operation for Train 2," said Mark Coscio, McDermott's Senior Vice President for North, Central and South America. "I commend the project team for delivering these results and getting us closer to substantial completion."

Zachry Group, as the joint venture lead, partnered with McDermott for the Pre-FEED in 2011, followed by FEED works to support the early development stage of the project as a one-stop shop solution provider for Trains 1 and 2. Later Chiyoda joined the joint venture partnership for work related to Train 3. The project scope includes three pre-treatment trains, a liquefaction facility with three trains, a second loading berth and a 165,000 m3 full containment LNG storage tank.

Freeport LNG Trains 2 and 3 remain on schedule with Train 3 initial production of LNG scheduled for Q1 of 2020.

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Cheniere: Innovative deal structuring on Corpus Christi

This year saw one of the first innovative upstream gas supply deals for a US Gulf Coast liquefaction plant.

In June, Cheniere had signed a long term gas supply agreement with Apache for its Corpus Christi Stage III trains. The Corpus Christi Stage III project is being developed to include up to seven midscale liquefaction trains with a total expected nominal production capacity of approximately 9.5mtpa.

The supply agreement will be for gas volumes of 15mmbtu/day, delivered to Corpus Christi, and more importantly Apache will receive a gas price that will be the LNG price less a fixed liquefaction fee and certain costs incurred by Cheniere.

The LNG associated with this gas supply is c.0.85mtpa and will be marketed by Cheniere.

“This first-of-its-kind long-term agreement with Apache represents a commercial evolution in the U.S. LNG industry, as it will ensure the continued reliable delivery of natural gas to Cheniere from one of the premier producers in the Permian Basin, while enabling Apache to access global LNG pricing and receive flow assurance for its gas,” said Jack Fusco, Cheniere’s President and CEO.

“This commercial agreement, which is expected to support the Corpus Christi Stage III project, reinforces Cheniere’s track record of creating innovative, collaborative solutions to meet customers’ needs and support Cheniere’s growth.

Apache’s agreement with Cheniere is part of the company’s long-term strategy to leverage the scale of our assets in the Permian Basin and diversify our customer base and cost structure by accessing new markets for natural gas produced at Alpine High. We are pleased to partner with Cheniere in this innovative marketing agreement,” said John J. Christmann IV, Apache’s Chief Executive Officer and President.

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