Entergy Gulf States Louisiana, L.L.C. signed a commercial and contractual agreement with Sempra Energy’s Cameron LNG unit to supply up to 200 megawatts of additional power to the proposed Cameron LNG liquefaction project in Hackberry.
In 2012, Sempra Energy announced plans to develop a natural gas liquefaction export facility at the site of its existing Cameron LNG receipt terminal in Hackberry. Entergy Gulf States Louisiana currently provides electrical services to the existing Cameron LNG terminal.
The power contract between Entergy Gulf States Louisiana and Cameron LNG is for 30 years, with a 10-year initial term and automatic renewals for four successive five-year terms. Entergy plans to upgrade its electric transmission system to meet the increased demand the liquefaction facility will generate.
“We are pleased we can further extend our relationship with Entergy to provide electric power to the new liquefaction facility,” said Octavio M.C. Simoes, president of Sempra Energy’s LNG operations. “Entergy is a staunch supporter of economic development in Southwest Louisiana and understands the benefits our project brings to the region.”
The completed Cameron LNG liquefaction facility is expected to be comprised of three liquefaction trains with a total nameplate capacity of 13.5 million tons per annum of liquefied natural gas with an expected export capability of 12 Mtpa of LNG or approximately 1.7 billion cubic feet per day.
The anticipated incremental investment in the liquefaction project is estimated to be between $6 billion and $7 billion, excluding capitalized interest, financing and existing facility costs. Construction on the liquefaction project is expected to start in 2014 with the first train to commence operations in the second half of 2017 and all three trains in 2018.
The Federal Energy Regulatory Commission recently announced the environmental review and permitting schedule for the project. Cameron LNG is the only proposed LNG export application currently pending before the FERC to have reached this milestone in the permitting process.
“We are always looking for opportunities to attract new businesses and retain and grow existing businesses in our service area,” said Phillip May, president and chief operating officer of Entergy Louisiana, LLC and Entergy Gulf States Louisiana. “This agreement with Cameron LNG to power their facility expansion is a perfect example of how our economic development efforts support the region’s – and the state’s – economy, growth and business viability.”
[mappress] LNG World News Staff, May 1, 2013; Image: Cameron LNG