Sempra LNG, a subsidiary of Sempra Energy, on Thursday announced that its
Cameron LNG liquefied natural gas (LNG) receipt terminal near Lake
Charles, La., has successfully completed performance testing and has
begun commercial operations.
Over the past month, start-up and commissioning activities have been
completed, including the arrival of the facility's first two LNG
commissioning cargoes and obtaining the approval to commence
operations from the Federal Energy Regulatory Commission.
"With today's announcement, our LNG business now has two fully
operational North American receipt terminals with the unique ability
to serve suppliers in both the Atlantic and Pacific markets," said
Donald E. Felsinger, chairman and chief executive officer of Sempra
Energy. "This is a business supported by long term contracts that
will provide shareholders with predictable cash flows well into the
Sempra LNG owns 100 percent of the Cameron LNG facility and has sold
40 percent of its processing capacity to Italy's Eni S.p.A. under a
20-year terminal services agreement. Last month, Sempra LNG announced
it had signed a flexible agreement to purchase up to 50 cargoes from
one of the world's largest suppliers of liquefied natural gas, Ras
Laffan Liquefied Natural Gas Company Limited 3 (RL 3), an affiliate
of RasGas Company Limited (RasGas). The agreement allows cargoes to
begin Aug. 1, 2009, through Dec. 31, 2010. Each cargo could contain
up to 4.8 billion cubic feet of natural gas.
"We're proud of the milestones achieved at Cameron LNG, completing
construction, successfully meeting performance standards and
beginning commercial operations in time to support the recently
announced agreement with RasGas and the existing capacity agreement
with Eni," said Darcel L. Hulse, president and chief executive
officer of Sempra LNG. "We plan to expand on this success by
continuing to negotiate with other parties interested in acquiring
either long- or short-term capacity at Cameron LNG."
Cameron LNG's first cargo arrived June 21 aboard BP's British
Diamond, an LNG carrier bringing supplies from Trinidad. A second LNG
ship, BP's British Emerald, arrived at the terminal June 30 with a
cargo from Trinidad. Cameron LNG is capable of processing 1.5 billion
cubic feet per day (Bcf/d) of natural gas.
Sempra LNG's other LNG receipt terminal, Energia Costa Azul, is
located in Baja California, Mexico, and commenced operations in May
2008. Energia Costa Azul is the first LNG receipt terminal on the
west coast of North America and is capable of processing 1.0 Bcf/d.
LNG is simply natural gas in liquid form. To reach a liquid state,
natural gas must be cooled. The liquid gas is then transported aboard
specially designed carriers for delivery to receipt terminals. These
receipt terminals store LNG, return it to its gaseous state and
dispatch it into pipelines for customer use. In LNG's 50-plus year
shipping history, LNG carriers have traveled more than 100 million
miles without a major incident.
Sempra LNG develops and operates LNG receipt terminals serving North
American markets. Sempra Energy, based in San Diego, is a Fortune 500
energy services holding company with 2008 revenues of nearly $11
billion. The Sempra Energy companies' 13,600 employees serve more than
29 million consumers worldwide.