SAN DIEGO, March 2, 2020 /PRNewswire/ -- Sempra LNG, a
subsidiary of Sempra Energy (NYSE: SRE), today announced that
Cameron LNG's second train of the liquefaction-export
infrastructure project in Hackberry,
La., has begun commercial operations under Cameron LNG's
tolling agreements.
"We are excited that our first liquefaction project is nearing
completion and we couldn't be more pleased that Cameron LNG is
already contributing to position the U.S. as one of the top
LNG-producing countries in the world," said Lisa Glatch, chief operating officer of Sempra
LNG and board chair for Cameron LNG. "We are looking forward to
achieving commercial operations of the third and final train of
Phase 1 while maintaining the same remarkable safety record the
project has achieved thus far."
Train 3 remains on track to start initial liquefied natural gas
(LNG) production in the second quarter of 2020 and to commence
commercial operations in the third quarter of 2020. 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.
Sempra Energy's share of full-year run-rate earnings from the
Phase 1 project are anticipated to be between $400 million and $450
million annually starting in 2021 when all three trains
achieve commercial operations under Cameron LNG's tolling
agreements.
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 four other LNG export projects
in North America, including
Cameron LNG Phase 2, 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 LNG Phase 1 and Phase 2 in Mexico.
The successful development and ultimate construction of Sempra
Energy's LNG export projects are subject to a number of risks and
uncertainties and there can be no assurance that any of these
projects will be completed.
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 up to 45 Mtpa of clean natural gas to the largest world
markets, which would make Sempra Energy one of North
America's largest developers of LNG-export infrastructure
facilities.
Sempra Energy's mission is to be North
America's premier energy infrastructure company. With more
than $65 billion in total assets
reported in 2019, the San Diego
based company is the utility holding company with the largest U.S.
customer base. The Sempra Energy companies' more than 20,000
employees deliver energy with purpose to over 40 million consumers
worldwide. The company is focused on the most attractive markets in
North America, including
California, Texas, Mexico
and the LNG export market. Sempra Energy has been consistently
recognized for its leadership in diversity and inclusion, and
sustainability, and is a member of the S&P 500 Utilities Index
and the Dow Jones Utility Index. The company was also named one of
the "World's Most Admired Companies" for 2020 by Fortune
Magazine.
We make statements in this press release that are not
historical fact and constitute forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements are based on assumptions with
respect to the future, involve risks and uncertainties, and are not
guarantees of performance. Future results may differ materially
from those expressed in the forward-looking statements. These
forward-looking statements represent our estimates and assumptions
only as of the date of this press release. We assume no obligation
to update or revise any forward-looking statement as a result of
new information, future events or other factors.
In this press release, forward-looking statements can be
identified by words such as "believes," "expects," "anticipates,"
"plans," "estimates," "projects," "forecasts," "should," "could,"
"would," "will," "confident," "may," "can," "potential,"
"possible," "proposed," "target," "pursue," "outlook," "maintain,"
or similar expressions, or when we discuss our guidance,
strategy, goals, vision, mission, opportunities, projections or
intentions.
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: decisions, investigations, regulations, issuances of permits
and other authorizations, and other actions by the U.S. Department
of Energy, regulatory and governmental bodies and jurisdictions in
the U.S. and other countries in which we operate; the success of
business development efforts, construction projects and major
acquisitions and divestitures, including risks in (i) the ability
to make a final investment decision and completing construction
projects on schedule and budget; (ii) obtaining the consent of
partners; (iii) counterparties' financial or other ability to
fulfill contractual commitments; (iv) the ability to complete
contemplated acquisitions and/or divestitures; and (v) the ability
to realize anticipated benefits from any of these efforts once
completed; the resolution of civil and criminal litigation,
regulatory investigations and proceedings and arbitrations; actions
by credit rating agencies to downgrade our credit ratings or to
place those ratings on negative outlook and our ability to borrow
at favorable interest rates; moves to reduce or eliminate reliance
on natural gas; weather, natural disasters, accidents, equipment
failures, computer system outages and other events that disrupt our
operations, damage our facilities and systems, cause the release of
harmful materials, cause fires and subject us to 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), may be disputed by insurers or may
impact our ability to obtain satisfactory levels of affordable
insurance; cybersecurity threats to storage and pipeline
infrastructure, the information and systems used to operate our
businesses, and the confidentiality of our proprietary information
and the personal information of our customers and employees;
expropriation of assets, the failure of foreign governments and
state-owned entities to honor the terms of contracts, and property
disputes; volatility in foreign currency exchange, interest and
inflation rates and commodity prices and our ability to effectively
hedge the risk of such volatility; changes in trade policies, laws
and regulations, including tariffs and revisions to or replacement
of international trade agreements, such as the North American Free
Trade Agreement, that may increase our costs or impair our ability
to resolve trade disputes; the impact of changes to federal and
state tax laws and our ability to mitigate adverse impacts; 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.
Sempra LNG and Port Arthur LNG, LLC are not the same as the
California utilities, San Diego
Gas & Electric Company or Southern California Gas
Company, or Oncor Electric Delivery Company LLC and are not
regulated by the California Public Utilities Commission.
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SOURCE Sempra LNG