Sempra and Mitsui sign MOU on LNG export projects in the US and Mexico

Sempra Energy and Mitsui have signed a non-binding memorandum of understanding (MOU) to cooperate on LNG projects in North America. Under the terms of the agreement, Mitsui could take part in the second phase of the Cameron LNG project in Louisiana (United States) and in the future expansion of the Energía Costa Azul (ECA) LNG project in Baja California, Mexico. Mitsui could purchase up to 1/3 of the available capacity of the project and could offtake around 1 Mt/year of LNG from the project.

Mitsui already owns a 16.6% stake in the Phase 1 of the Cameron LNG export project, in partnership with Sempra LNG (50.2%), Total (16.6%), and Japan LNG Investment company (16.6%, jointly owned by Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha (NYK)). The first phase includes three trains of 4.5 Mt/year each (total of 13.5 Mt/year), with train 1 commissioned in 2019 and trains 2 and 3 set to be operational in the first quarter of 2020 and in mid-2020, respectively. Two additional liquefaction trains (trains 4 and 5, rated 4.5 Mt/year each) and up to two additional LNG storage tanks are under consideration.

Under the terms of the agreement, Mitsui could also take an equity stake in the expansion of the ECA liquefaction project in Mexico, developed by IEnova, Sempra's Mexican subsidiary. The first phase of the project will include one 2.4 Mt/year liquefaction train and could include additional trains with an expected capacity of approximately 12 Mt/year. In November 2018, Sempra LNG and Mitsui entered into a heads of agreement (HoA) and are working on a definitive 20-year LNG sales-and-purchase agreement for the potential purchase of 0.8 Mt/year of LNG from the ECA LNG Phase 1 project.