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Sempra and Total sign MoU for cooperation in North American LNG projects

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LNG Industry,

Sempra Energy has announced that it has signed a memorandum of understanding (MoU) with Total S.A. providing the framework for cooperation in the development of North American LNG export projects.

The MoU covers the continuing development of the Cameron LNG liquefaction-export project in Louisiana, US, and the Energía Costa Azul (ECA) liquefaction-export project in Baja California, Mexico.

According to the statement, the MoU contemplates Total potentially contracting for up to approximately 9 million tpy of LNG offtake across Sempra’s LNG export development projects on the US Gulf Coast and West Coast of North America, specifically Cameron LNG Phase 2 and ECA LNG. In addition to this, Total, which is already a partner in the Cameron LNG joint venture (JV) with a 16.6% stake, may also acquire an equity interest in ECA LNG.

Jeffrey W. Martin, CEO of Sempra Energy, said: “The US is increasing its global leadership position in the production of oil and natural gas.

“In large measure, the next step in fulfilling our country’s energy potential is the development of critical export infrastructure for LNG. Sempra Energy has a long-term goal of developing more than 45 million tpy of LNG export capacity in North America. That is why our relationship with Total is so important. We plan to leverage the competitive strengths of both companies to accelerate development of North American LNG exports to global markets.”

Patrick Pouyanné, Chairman and CEO of Total S.A., added: “This relationship with Sempra Energy will support our goal of building a diverse portfolio of LNG supply options that offers our customers flexibility, reliability and low-cost North American natural gas.

“We are pleased to collaborate with Sempra Energy and the other Cameron LNG co-owners to extend the Cameron LNG project and to further enhance its competitiveness, but also participate in the development of export capacity on the West Coast of Mexico, which will benefit from synergies with existing infrastructure and from a significant shipping cost advantage for customers in Asia.”

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