– Cameron LNG to Start Recognizing Revenues from Train 2
– Sempra Energy’s Share of Full-Year Run-Rate Earnings from the First Three Trains are Projected to be Between $400 Million and $450 Million Annually
SAN DIEGO, March 2, 2020 /PRNewswire/ — Sempra LNG, a subsidiary of Sempra Energy (NYSE: SRE), today announced that Cameron LNG’s second train of the liquefaction-export infrastructure project in Hackberry, La., has begun commercial operations under Cameron LNG’s tolling agreements.
“We are excited that our first liquefaction project is nearing completion and we couldn’t be more pleased that Cameron LNG is already contributing to position the U.S. as one of the top LNG-producing countries in the world,” said Lisa Glatch, chief operating officer of Sempra LNG and board chair for Cameron LNG. “We are looking forward to achieving commercial operations of the third and final train of Phase 1 while maintaining the same remarkable safety record the project has achieved thus far.”
Train 3 remains on track to start initial liquefied natural gas (LNG) production in the second quarter of 2020 and to commence commercial operations in the third quarter of 2020. The facility’s first liquefaction train started commercial operations in August 2019.
Phase 1 of the Cameron LNG export project includes the first three liquefaction trains that will enable the export of approximately 12 million tonnes per annum (Mtpa) of LNG, or approximately 1.7 billion cubic feet per day.
Sempra Energy’s share of full-year run-rate earnings from the Phase 1 project are anticipated to be between $400 million and $450 million annually starting in 2021 when all three trains achieve commercial operations under Cameron LNG’s tolling agreements.
Cameron LNG is jointly owned by affiliates of Sempra LNG, Total, Mitsui & Co., Ltd., and Japan LNG Investment, LLC, a company jointly owned by Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha (NYK). Sempra Energy indirectly owns 50.2% of Cameron LNG.
Sempra Energy is also developing four other LNG export projects in North America, including Cameron LNG Phase 2, which could include up to two additional liquefaction trains and up to two additional LNG storage tanks; Port Arthur LNG in Texas; and Energía Costa Azul LNG Phase 1 and Phase 2 in Mexico.
The successful development and ultimate construction of Sempra Energy’s LNG export projects are subject to a number of risks and uncertainties and there can be no assurance that any of these projects will be completed.
Sempra LNG develops and builds natural gas liquefaction facilities and is pursuing the development of five strategically located LNG projects in North America with a goal of delivering up to 45 Mtpa of clean natural gas to the largest world markets, which would make Sempra Energy one of North America’s largest developers of LNG-export infrastructure facilities.
Sempra Energy’s mission is to be North America’s premier energy infrastructure company. With more than $65 billion in total assets reported in 2019, the San Diego based company is the utility holding company with the largest U.S. customer base. The Sempra Energy companies’ more than 20,000 employees deliver energy with purpose to over 40 million consumers worldwide. The company is focused on the most attractive markets in North America, including California, Texas, Mexico and the LNG export market. Sempra Energy has been consistently recognized for its leadership in diversity and inclusion, and sustainability, and is a member of the S&P 500 Utilities Index and the Dow Jones Utility Index. The company was also named one of the “World’s Most Admired Companies” for 2020 by Fortune Magazine.
We make statements in this press release that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions with respect to the future, involve risks and uncertainties, and are not guarantees of performance. Future results may differ materially from those expressed in the forward-looking statements. These forward-looking statements represent our estimates and assumptions only as of the date of this press release. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or other factors.
In this press release, forward-looking statements can be identified by words such as “believes,” “expects,” “anticipates,” “plans,” “estimates,” “projects,” “forecasts,” “should,” “could,” “would,” “will,” “confident,” “may,” “can,” “potential,” “possible,” “proposed,” “target,” “pursue,” “outlook,” “maintain,” or similar expressions, or when we discuss our guidance, strategy, goals, vision, mission, opportunities, projections or intentions.
Factors, among others, that could cause our actual results and future actions to differ materially from those described in any forward-looking statements include risks and uncertainties relating to: decisions, investigations, regulations, issuances of permits and other authorizations, and other actions by the U.S. Department of Energy, regulatory and governmental bodies and jurisdictions in the U.S. and other countries in which we operate; the success of business development efforts, construction projects and major acquisitions and divestitures, including risks in (i) the ability to make a final investment decision and completing construction projects on schedule and budget; (ii) obtaining the consent of partners; (iii) counterparties’ financial or other ability to fulfill contractual commitments; (iv) the ability to complete contemplated acquisitions and/or divestitures; and (v) the ability to realize anticipated benefits from any of these efforts once completed; the resolution of civil and criminal litigation, regulatory investigations and proceedings and arbitrations; actions by credit rating agencies to downgrade our credit ratings or to place those ratings on negative outlook and our ability to borrow at favorable interest rates; moves to reduce or eliminate reliance on natural gas; weather, natural disasters, accidents, equipment failures, computer system outages and other events that disrupt our operations, damage our facilities and systems, cause the release of harmful materials, cause fires and subject us to liability for property damage or personal injuries, fines and penalties, some of which may not be covered by insurance (including costs in excess of applicable policy limits), may be disputed by insurers or may impact our ability to obtain satisfactory levels of affordable insurance; cybersecurity threats to storage and pipeline infrastructure, the information and systems used to operate our businesses, and the confidentiality of our proprietary information and the personal information of our customers and employees; expropriation of assets, the failure of foreign governments and state-owned entities to honor the terms of contracts, and property disputes; volatility in foreign currency exchange, interest and inflation rates and commodity prices and our ability to effectively hedge the risk of such volatility; changes in trade policies, laws and regulations, including tariffs and revisions to or replacement of international trade agreements, such as the North American Free Trade Agreement, that may increase our costs or impair our ability to resolve trade disputes; the impact of changes to federal and state tax laws and our ability to mitigate adverse impacts; and other uncertainties, some of which may be difficult to predict and are beyond our control.
These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the U.S. Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC’s website, www.sec.gov, and on the company’s website at www.sempra.com.
Sempra LNG and Port Arthur LNG, LLC are not the same as the California utilities, San Diego Gas & Electric Company or Southern California Gas Company, or Oncor Electric Delivery Company LLC and are not regulated by the California Public Utilities Commission.
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Paty O. Mitchell, Sempra Energy, (877) 340-8875, firstname.lastname@example.org, Twitter: @SempraLNGM; Financial Contact: Adam Pierce, Sempra Energy, (877) 736-7727, email@example.com
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