Sempra Energy (NYSE: SRE) announced that the Cameron Liquefaction Project sponsors -- Sempra LNG, GDF Suez SA, Mitsui & Co. Ltd and Mitsubishi Corp. -- have each approved a final investment decision for the development, construction and operation of the natural gas liquefaction and export project planned at the site of Sempra Energy's Cameron LNG receipt terminal in Hackberry, La.
The total project cost is estimated at approximately $10 billion, including contribution of the existing Cameron LNG facilities, construction of the new facilities and financing cost. The financing commitments for the project total $7.4 billion and will be provided by the Japan Bank for International Cooperation (JBIC), Nippon Export and Investment Insurance (NEXI) and a group of 29 commercial banks.
"This represents one of the largest project financings in the U.S.," said Octavio M.C. Simoes, president of Sempra LNG. "Today's commitments from our project sponsors and international banks put us one step closer to delivering domestic natural gas to America's trading partners in Europe and Japan."
The three-train natural gas liquefaction facilities will have an export capability of 12 million tonnes per annum of liquefied natural gas, or approximately 1.7 billion cubic feet per day. Subject to final regulatory approval, satisfaction of conditions of the initial equity funding and first disbursement of the financing, construction on the project is expected to begin later this year. All three trains are expected to commence operations during 2018, with the first full year of operations in 2019.