GDF SUEZ to become US LNG exporter

GDF SUEZ has announced the signing of a joint venture agreement with Sempra Energy, Mitsubishi and Mitsui for the development, financing and construction of the natural gas liquefaction project of Cameron LNG, a unit of Sempra Energy, in Louisiana.

The facility will have three liquefaction trains with a capacity of 12 million tpy of liquefied natural gas (LNG) and will be operated by Cameron LNG.

Under this JV agreement, GDF SUEZ, Mitsubishi and Mitsui will each acquire a 16.6% equity stake in the existing terminal and in the liquefaction project, with Sempra Energy retaining a 50.2% position.

Last year, GDF SUEZ announced that it had also signed a 20-year liquefaction service agreement with Sempra Energy. GDF SUEZ, Mitsubishi and Mitsui have subscribed the full capacity of the three-train facility. GDF SUEZ will thus have access to a capacity of 4 million tpy of LNG, which will be exported to the Group’s LNG markets.

The tolling and joint venture agreements are subject to a final investment decision by each party, to final permit authorisations, and to securing financing commitments, all of which are expected by early next year, along with customary conditions precedent. The new LNG plant is expected to start operations in late 2017.

Last year, Cameron LNG obtained approval from the US Department of Energy (DOE) to export up to 12 million tpy of domestically produced LNG to all current and future countries with which the US has signed a Free Trade Agreement (FTA).

Adapted from press release by Callum O’Reilly

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