Total, Sempra Energy sign LNG MoU

Total, CNOOC boost LNG partnership

Total and Sempra Energy have signed a Memorandum of Understanding (MoU) on the north American liquefied natural gas (LNG) market.

The deal could see the French energy group acquire a further stake in the sector.

Total take a contract for approximately up to 9 million tonnes per annum (Mtpa) of LNG offtake across Sempra Energy’s LNG export development projects on the U.S. Gulf Coast and West Coast of North America, specifically the Cameron LNG Phase 2 and Energia Costa Azul (ECA) LNG projects.

Total, the second-largest player in the global LNG market, said the relationship with Sempra Energy, will boost its goal to build a diverse portfolio of LNG supply options.

Total, which is already a partner of Cameron LNG joint venture with a 16.6 percent stake, also may acquire an equity interest in the Energia Costa Azul LNG project.

“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,” said Total’s CEO, Patrick Pouyanne in a statement.

The $10 billion phase 1 of the Cameron LNG joint-venture liquefaction-export project, which includes three liquefaction trains with approximately 14 Mtpa of export capacity, is under construction in Louisiana.

All three trains are expected to be producing LNG in 2019, added Total.

The second phase will add two additional liquefaction trains and up to two LNG storage tanks with approximately 9 Mtpa of capacity, the company also said.

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