SAN DIEGO, May 16, 2013 /PRNewswire/ -- Sempra Energy
(NYSE: SRE), GDF SUEZ S.A. (GSZ.FP), Mitsubishi Corporation
(TSE 8058; LSE MBC) and Mitsui & Co., Ltd. (8031.TYO), today
announced that they have signed 20-year tolling capacity and
joint-venture agreements to support the development, financing and
construction of a liquefied natural gas (LNG) export facility at
the site of the Cameron LNG receipt terminal in Hackberry, La.
The tolling agreements subscribe the full nameplate capacity of
the three-train, 13.5- million-tonnes-per-annum (Mtpa) facility
that will provide an export capability of 12 Mtpa of LNG, or
approximately 1.7 billion cubic feet per day (Bcfd), and the full
regasification capacity of 1.5 Bcfd. Each tolling agreement
is for 4 Mtpa.
The joint-venture agreement calls for affiliates of GDF SUEZ,
Mitsubishi (through a related company jointly established with
Nippon Yusen Kabushiki Kaisha) and Mitsui each to acquire
16.6-percent equity in the existing facilities and the liquefaction
project. A Sempra Energy affiliate will retain 50.2
percent.
The tolling capacity and the joint-venture agreements are
subject to a final investment decision to proceed by each party,
finalization of permit authorizations, securing financing
commitments that are expected to occur by early 2014, as well as
other customary conditions.
"These agreements represent a major step forward in the
development of our LNG export project at the site of the Cameron
LNG facility," said Mark A. Snell,
president of Sempra Energy. "This project, one of the
largest in Sempra Energy's history, provides benefits to the local
Louisiana economy, promotes a
favorable balance of trade for the national economy, and supports
national and international energy security by assuring reliable
long-term gas supplies to U.S. allies and trading partners."
The anticipated incremental investment, the majority of which
will be project-financed, is estimated to be approximately
$6 billion to $7 billion, excluding
capitalized interest and other financing costs. The total cost of
the facility, including the cost of the existing facilities plus
interest during construction, financing costs and required
reserves, is estimated to be approximately $9 billion to $10 billion.
Construction is expected to start in 2014 with the first phase of
liquefaction operations to commence in the second half of
2017. Full commercial operation of all three trains is
expected in 2018.
"The Cameron LNG project has strong local and regional support,
experienced, world-class commercial partners in GDF SUEZ,
Mitsubishi and Mitsui and a track record of safe and reliable
operations," said Octavio M. C.
Simoes, president of Sempra LNG. "We look forward to working
with our partners to achieve a final investment decision and
commence construction in early 2014."
"By being a shareholder of the Cameron LNG project, alongside
strong and experienced partners, GDF SUEZ -- one of the world LNG
leaders -- will contribute to the emergence in the U.S. of a new
source of LNG," said Jean-Marie
Dauger, executive vice president in charge of the Global Gas
& LNG business line for GDF SUEZ. "The Cameron LNG project will
add growth, diversity and flexibility to the group's LNG portfolio,
in order to supply its existing or future markets in high growth
regions."
"By participating in this LNG export project, we are proud to be
able to contribute not only to the development of stable energy
trade between the U.S. and countries around the world, including
Japan, but also to the growth of
the U.S. economy," said Jun
Nishizawa, vice president of the Global Gas Business
Department for Mitsubishi. "With the experience Mitsubishi has
accumulated from more than a dozen LNG projects over the last
half-century, we are committed to exert all our efforts for the
success of this project."
"We are pleased to have the opportunity to participate in a
stable source of energy supply to meet the increasing global
demand, including Japan," said
Hirotatsu Fujiwara, general manager
of the Natural Gas Division I for Mitsui. "We are confident that
our over 40 years' experience in the LNG industry will contribute
to the success of this project."
Last year, Cameron LNG obtained approval from the U.S.
Department of Energy (DOE) to export up to 12 Mtpa of domestically
produced LNG to all current and future Free Trade Agreement
countries; the authorization to export LNG to countries with which
the U.S. does not have a Free Trade Agreement is pending review by
the DOE.
Cameron LNG initiated the pre-filing process with the Federal
Energy Regulatory Commission (FERC) in April
2012 and filed its permit application with the FERC
Dec. 7, 2012, requesting approval to
construct and operate the project. On April 4, 2013, the FERC issued a "Notice of
Schedule for Environmental Review of the Cameron Liquefaction
Project" that calls for the final Environmental Impact Statement to
be issued in November 2013. Cameron LNG is the first LNG
export facility application pending before the FERC to have reached
this important milestone in the permitting process and is expected
to receive the FERC authorization in early 2014.
In January 2013, Cameron LNG
initiated a tender process for the engineering, procurement and
construction contract for the project and launched its financing
process with the Japan Bank for International Cooperation, Nippon
Export and Investment Insurance, and commercial banks. Cameron LNG
expects to secure financing commitments for the project by late
2013 or early 2014 and award the engineering, procurement and
construction contract in late 2013.
ABOUT GDF SUEZ
GDF SUEZ develops its businesses (electricity, natural gas,
services) around a model based on responsible growth to take up
today's major energy and environmental challenges: meeting energy
needs, ensuring the security of supply, fighting against climate
change and maximizing the use of resources. The Group provides
highly efficient and innovative solutions to individuals, cities
and businesses by relying on diversified gas-supply sources,
flexible and low-emission power generation as well as unique
expertise in four key sectors: liquefied natural gas, energy
efficiency services, independent power production and environmental
services. GDF SUEZ employs 219,300 people worldwide and achieved
revenues of €97 billion in 2012. The Group is listed on the
Paris, Brussels and Luxembourg stock exchanges and is represented
in the main international indices: CAC 40, BEL 20, DJ Euro Stoxx
50, Euronext 100, FTSE Eurotop 100, MSCI Europe, ASPI Eurozone,
Vigeo World 120, Vigeo Europe 120 and Vigeo France 20.
ABOUT MITSUBISHI CORPORATION
Mitsubishi Corporation is a global integrated business enterprise
that develops and operates businesses across virtually every
industry including industrial finance, energy, metals, machinery,
chemicals, foods, and environmental business. MC's current
activities are expanding far beyond its traditional trading
operations as its diverse business ranges from natural resources
development to investment in retail business, infrastructure,
financial products and manufacturing of industrial goods. With over
200 offices & subsidiaries in approximately 90 countries and a
network of over 500 group companies, Mitsubishi employs a
multinational workforce of nearly 60,000 people.
ABOUT MITSUI & CO. LTD
Mitsui & Co., Ltd. is one of the most diversified and
comprehensive trading, investment and service enterprises in the
world, with 150 offices in 67 countries as of May, 2013. Utilizing
the global operating locations, network and information resources,
Mitsui is multilaterally pursuing business that ranges from product
sales, worldwide logistics and financing, through to the
development of major international infrastructure and other
projects in the following fields, Iron & Steel Products,
Mineral & Metal Resources, Infrastructure Projects, Motor
Vehicles & Construction Machinery, Marine & Aerospace,
Chemicals, Energy, Food Resources, Food Products & Services,
Consumer Services, IT, Financial & New Business and
Transportation Logistics. Mitsui is actively taking on challenges
for global business innovation around the world.
ABOUT NIPPON YUSEN KABUSHIKI KAISHA
Nippon Yusen Kabushiki Kaisha is one of the world's leading
transportation companies. At the end of March 2013, the NYK Group was operating 846 major
ocean vessels, as well as fleets of planes, trains, and trucks. The
company's shipping fleet includes 389 bulk carriers, 126
containerships (including semi-containerships), 120 car carriers,
82 tankers, 51 wood-chip carriers, 28 LNG carriers, 18 heavy-load
carriers or conventional ships, three cruise ships, and 29 other
ships. NYK's revenue in fiscal 2012 was about $23 billion, and as a group NYK employs about
55,000 people worldwide. NYK is based in Tokyo and has regional headquarters in
London, New York, Singapore, Hong
Kong, Shanghai,
Sydney, and Sao Paulo.
ABOUT SEMPRA ENERGY
Sempra Energy, based in San Diego,
is a Fortune 500 energy services holding company with 2012 revenues
of approximately $10 billion.
The Sempra Energy companies' nearly 17,000 employees serve more
than 31 million consumers worldwide.
This press release contains statements that are not
historical fact and constitute forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These statements can be identified by words like
"believes," "expects," "anticipates," "intends," "plans,"
"forecasts," "estimates," "may," "will," "would," "could,"
"should," "potential," "target," "outlook," "depends," "pursue" or
similar expressions, or discussions of guidance, strategies, plans,
goals, initiatives, objectives or intentions. Forward-looking
statements are not guarantees of performance. They involve
risks, uncertainties and assumptions. Future results may
differ materially from those expressed in the forward-looking
statements. Forward-looking statements are necessarily based
upon various assumptions involving judgments with respect to the
future and other risks, including, among others: local, regional,
national and international economic, competitive, political,
legislative and regulatory conditions and developments; actions and
the timing of actions by the California Public Utilities
Commission, California State Legislature, Federal Energy Regulatory
Commission, U.S. Department of Energy, Nuclear Regulatory
Commission, California Energy Commission, California Air Resources
Board, and other regulatory, governmental and environmental bodies
in the United States and other
countries where the company does business; capital market
conditions, including the availability of credit and the liquidity
of investments; inflation, interest and exchange rates; the impact
of benchmark interest rates, generally Moody's A-rated utility bond
yields, on the California
utilities' cost of capital; the timing and success of business
development efforts and construction, maintenance and capital
projects, including risks inherent in the ability to obtain, and
the timing of the granting of, permits, licenses, certificates and
other authorizations; energy markets, including the timing and
extent of changes and volatility in commodity prices; the
availability of electric power, natural gas and liquefied natural
gas, including disruptions caused by failures in the North American
transmission grid, pipeline explosions and equipment failures;
weather conditions, natural disasters, catastrophic accidents, and
conservation efforts; risks inherent in nuclear power generation
and radioactive materials storage, including catastrophic release
of such materials, the disallowance of the recovery of the
investment in, or operating costs of, the generation facility due
to an extended outage, and increased regulatory oversight; risks
posed by decisions and actions of third parties who control the
operations of investments in which the company does not have a
controlling interest; wars, terrorist attacks and cyber security
threats; business, regulatory, environmental and legal decisions
and requirements; expropriation of assets by foreign governments
and title and other property disputes; the impact on reliability of
SDG&E's electric transmission and distribution system due to
increased power supply from renewable energy sources; the impact on
competitive customer rates of the growth in distributed and local
power generation and the corresponding decrease in demand for power
delivered through our electric transmission and distribution
system; the inability or determination not to enter into long-term
supply and sales agreements or long-term firm capacity agreements;
the resolution of litigation; and other uncertainties, all of which
are difficult to predict and many of which are beyond the control
of the company. These risks and uncertainties are further
discussed in the reports that Sempra Energy has filed with the
Securities and Exchange Commission. 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.
These forward-looking statements speak only as of the date
hereof, and the company undertakes no obligation to update or
revise these forecasts or projections or other forward-looking
statements, whether as a result of new information, future events
or otherwise.
Sempra International, LLC, and Sempra U.S. Gas & Power,
LLC, are not the same companies as San Diego Gas & Electric
(SDG&E) or Southern California Gas Company (SoCalGas) and
Sempra International, LLC and Sempra U.S. Gas & Power, LLC are
not regulated by the California Public Utilities
Commission. Sempra International's underlying entities include
Sempra Mexico and Sempra South American Utilities. Sempra U.S. Gas
& Power's underlying entities include Sempra Renewables and
Sempra Natural Gas.
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SOURCE Sempra Energy
