Energy infrastructure company Sempra Energy and Japanese trader Mitsui & Co., LTD. have entered into a memorandum of understanding (MOU) under which the latter would take part in the Cameron LNG Phase 2 project in Louisiana.
The MoU also encompasses a future expansion of the Energía Costa Azul (ECA) LNG project in Baja California, Mexico.
Under the non-binding MoU, Mitsui wold purchase up to one-third of the available capacity of the Cameron LNG Phase 2 project. The company would also potentially offtake approximately 1 million tonnes per annum (Mtpa) of LNG and participate in a future expansion of ECA LNG.
Last November, Sempra LNG and Mitsui entered into a heads of agreement and are currently working to negotiate and finalize a definitive 20-year LNG sales-and-purchase agreement for the potential purchase of 0.8 Mtpa of LNG from the ECA LNG Phase 1 project.
Train 1 of the Cameron LNG Phase 1 project started commercial operations in August 2019. Trains 2 and 3 are expected to begin LNG production in the first quarter and second quarter of 2020, respectively, according to Sempra Energy.
Cameron LNG Phase 2 encompasses up two additional liquefaction trains and up to two additional LNG storage tanks. Mitsui is also an equity owner of Cameron LNG, LLC, the development company for Cameron LNG Phase 1 and Phase 2.
“We are pleased to further expand our strategic relationship with Sempra in a broader range of opportunities. This agreement will contribute to expanding Mitsui’s supply portfolio worldwide by utilizing the strengths and capabilities of both companies,” Motoyasu Nozaki, managing officer, chief operating officer of Energy Business Unit II, Mitsui & Co., Ltd, said.