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Cameron LNG receives final approval from DOE

LNG Industry,

Sempra Energy subsidiary, Cameron LNG, announced that it has received final authorisation from the US Department of Energy (DOE) to export domestically produced LNG from its proposed liquefaction facilities in Hackberry, Louisiana, to countries that do not have a free-trade agreement (FTA) with the US.

Landmark project

Debra Reed, CEO of Sempra Energy, commented: "Today's decision marks the last major regulatory hurdle for our Cameron LNG liquefaction-export project, clearing the way for execution of the largest capital project in Sempra Energy's history.

"This landmark project will create thousands of jobs and economic benefits for Louisiana and the US for decades to come, while delivering natural gas to America's trading partners in Europe and Asia."

The liquefaction-export project is expected to create approximately 3000 on-site jobs, as well as several hundred jobs in Louisiana in support of the project, including fabrication, engineering and operational jobs. Nearly 200 full-time jobs will be added to the operations of Cameron LNG.

FERC authorisation

Earlier this year, Cameron LNG received authorisation from the Federal Energy Regulatory Commission (FERC) to site, construct and operate the three-train liquefaction and export facilities. When completed, the project will have export capabilities of 12 million tpa of LNG, or approximately 1.7 billion ft3/d.

"With this final authorisation from DOE and the previous permit granted by FERC, we will be able to remain on schedule and commence operations during 2018," added Octavio Simoes, President of Sempra LNG.

"We appreciate the ongoing support of federal, state and local elected officials, as well as the local community, for their steadfast commitment to moving our project forward."

Final investment decision

In August 2014, Cameron liquefaction project sponsors, Sempra LNG, GDF Suez, Mitsui & Co., and Mitsubishi Corporation, through a related company jointly established with NYK, each approved a final investment decision for the project.

The total project cost is estimated at approximately US$ 10 billion, including contribution of the existing Cameron LNG facilities, construction of the new facilities and financing cost.

Cameron LNG ownership

Subject to further conditions, Sempra Energy will have an indirect 50.2% ownership interest in Cameron LNG and the related liquefaction project, and the remaining portion will be owned by affiliates of GDF Suez, Mitsubishi (through a related company jointly established with NYK) and Mitsui, each with 16.6% stakes.

Adapted from press release by Katie Woodward

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