SAN DIEGO, July 5, 2019 /PRNewswire/ -- McDermott
International (McDermott) and Chiyoda International (Chiyoda)
announced today they have reached an agreement with Cameron LNG for
performance-based commercial considerations related to the
construction and commissioning schedule that further aligns the
interests of all parties around safe, timely completion of Phase 1
of Cameron LNG, a three-train liquefaction-export project under
construction in Hackberry, La.
McDermott and Chiyoda are providing the engineering, procurement
and construction for the first three liquefaction trains at the
Cameron LNG export project. 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
(NYSE: SRE) indirectly owns 50.2% of Cameron LNG.
Sempra Energy issued the following media statement regarding the
agreement discussed above:
"As previously announced, commissioning of Train 1 at Cameron
LNG continues to advance, and the first commissioning cargo was
shipped from the facility earlier this year. Consistent with
previously disclosed timing, Train 2 and Train 3 are expected to
begin producing liquefied natural gas (LNG) in the first quarter
2020 and second quarter 2020, respectively.
"We believe it is reasonable to expect that the overall
economics of Cameron LNG will not significantly change as a result
of this agreement. Sempra Energy's projected share of full-year
run-rate earnings from the first three trains at Cameron LNG
continues to range between $400
million and $450 million
annually.
"Cameron LNG Phase 1 is one of five LNG export projects Sempra
Energy is developing in North
America: Cameron LNG Phase 2, previously authorized by FERC,
encompasses 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 Sempra Energy's 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."
This press release contains statements that are not
historical fact and constitute forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These statements can be identified by words such as
"believes," "expects," "anticipates," "plans," "estimates,"
"projects," "forecasts," "contemplates," "assumes," "depends,"
"should," "could," "would," "will," "confident," "may," "can,"
"potential," "possible," "proposed," "target," "pursue," "outlook,"
"maintain," or similar expressions or when we discuss our
guidance, strategy, plans, goals, vision, mission, opportunities,
projections, initiatives, objectives or intentions. Forward-looking
statements are not guarantees of performance. They involve risks,
uncertainties and assumptions. Future results may differ materially
from those expressed in the forward-looking statements.
Factors, among others, that could cause our actual results
and future actions to differ materially from those described in any
forward-looking statements include risks and uncertainties relating
to: actions and the timing of actions, including decisions, new
regulations and issuances of authorizations by the U.S. Department
of Energy, Federal Energy Regulatory Commission, U.S. Environmental
Protection Agency and Pipeline and Hazardous Materials Safety
Administration, states, cities and counties, and other regulatory
and governmental bodies in the U.S. and other countries in which we
operate; the success of business development efforts and
construction projects, including risks in (i) obtaining or
maintaining authorizations; (ii) completing construction projects
on schedule and budget; (iii) obtaining the consent of partners;
(iv) counterparties' ability to fulfill contractual commitments;
and (v) the ability to realize anticipated benefits from any of
these efforts once completed; the availability of natural gas and
liquefied natural gas, and natural gas pipeline and storage
capacity; equipment failures; changes in energy markets; volatility
in commodity prices; moves to reduce or eliminate reliance on
natural gas; risks posed by actions of third parties who control
the operations of our investments; weather conditions, natural
disasters, accidents, equipment failures, explosions, terrorist
attacks and other events that disrupt our operations, damage our
facilities and systems, cause the release of harmful materials, and
subject us to third-party liability for property damage or personal
injuries, fines and penalties, some of which may not be covered by
insurance (including costs in excess of applicable policy limits)
or may be disputed by insurers; cybersecurity threats to storage
and pipeline infrastructure, the information and systems used to
operate our businesses; the impact of federal or state tax reform
and our ability to mitigate adverse impacts; changes in foreign and
domestic trade policies and laws, including border tariffs,
revisions to or the replacement of international trade agreements,
and changes that make our exports less competitive or otherwise
restrict our ability to export; and other uncertainties, some of
which may be difficult to predict and are beyond our
control.
These risks and uncertainties are further discussed in the
reports that Sempra Energy has filed with the U.S. Securities and
Exchange Commission (SEC). These reports are available through the
EDGAR system free-of-charge on the SEC's website, www.sec.gov, and
on the company's website at www.sempra.com. Investors should not
rely unduly on any forward-looking statements. These
forward-looking statements speak only as of the date hereof, and
the company undertakes no obligation to update or revise these
forecasts or projections or other forward-looking statements,
whether as a result of new information, future events or
otherwise.
Sempra LNG and Port Arthur LNG, LLC are not the same as the
California Utilities, San Diego Gas & Electric Company
(SDG&E) or Southern California Gas Company (SoCalGas), or Oncor
Electric Delivery Company LLC (Oncor) and are not regulated by the
California Public Utilities Commission.
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SOURCE Sempra Energy