Cameron LNG Reaches Another Milestone With Federal Permit Application To Construct Liquefaction Project

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Dec 10, 2012, 09:00 ET

SAN DIEGO, Dec. 10, 2012 /PRNewswire/ -- Sempra Energy (NYSE: SRE) today announced it has reached another important milestone to add natural gas liquefaction and export facilities to its existing Cameron LNG terminal in Hackberry, La., filing its permit application with the Federal Energy Regulatory Commission (FERC) requesting approval to begin construction of the project. The project has been progressing successfully through the FERC pre-filing process, which was initiated in April.

"The Cameron liquefaction project represents a significant investment in new energy infrastructure in Louisiana that will stimulate local, regional and national economic activity, creating new jobs and supporting small businesses," said Mark A. Snell, president of Sempra Energy. "Our filing keeps us on schedule to receive FERC approval and begin construction in the fourth quarter 2013."

The net benefits of the project outlined in the FERC application include creating nearly 3,000 direct jobs in the peak construction year and approximately 130 full-time jobs when fully operational. The federal agency will review the application and conduct an environmental study of the project prior to acting on the permit.

Additional permits and approvals will be required before construction on the Cameron liquefaction project can be completed and the project becomes operational.

"The public scoping meetings held during the summer demonstrated strong community support for the proposed project," said Octavio M. C. Simoes, president of Sempra Energy's LNG operations. "Our project stimulates the economy, creates local wetlands, promotes stability in domestic natural gas pricing and increases global economic trade."

A report by the U.S. Department of Energy (DOE) released last week demonstrates that increased liquefied natural gas (LNG) exports will result in net economic benefits to the U.S. economy. The third-party study, prepared by NERA Economic Consulting, is expected to help the DOE weigh some 15 proposals for LNG export, including Sempra Energy's. The U.S. has more than a 100-year supply of natural gas.

Cameron LNG already has received approval from the DOE to export LNG to countries with which the U.S. has qualifying free-trade agreements. The company's application to export to non free-trade agreement countries, filed in December 2011, is expected to be among the first to be considered early next year.

The liquefaction facility will utilize Cameron LNG's existing facilities, including two marine berths capable of accommodating Q-Flex-sized LNG ships, three LNG storage tanks of 480,000 cubic meters, and vaporization capability for regasification services of 1.5 billion cubic feet (Bcf) per day. The new liquefaction facility will be comprised of three liquefaction trains with a total export capability of 12 million tonnes per annum of LNG, or approximately 1.7 Bcf per day. The facility is expected to begin delivering LNG to international markets in 2017.

Earlier this year, Cameron LNG signed commercial development agreements with Mitsubishi Corporation, Mitsui & Co. Ltd and a subsidiary of GDF SUEZ S.A. These commercial development agreements bind the parties to fund all development expenses, including design, permitting and engineering for the full capacity of the new facility.

Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2011 revenues of $10 billion. The Sempra Energy companies' 17,500 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," "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 the U.S. Treasury bond and 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 status of deregulation of retail natural gas and electricity delivery; 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.

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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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