Current SRE Stock Info

If Approved, New Export Capacity would Exceed 3.5 Bcf/d

Sempra Energy’s (ticker: SRE) Cameron LNG plant, located in Hackberry, Louisiana, is about to get bigger.

Representatives for the $10 billion LNG export plant applied for a facility expansion on February 24, 2015 – roughly four months after construction began. If approved, the expansion will provide an additional storage tank along with two liquefaction trains, increasing overall export capacity by 40%. Permission to expand the plant would make it the highest volume LNG exporter in the United States, based on information from the Federal Energy Regulatory Commission. Cameron LNG said its export capacity would be 3.53 Bcf/d in its release, which equates to nearly half of gas production from the Eagle Ford, according to February’s Drilling Productivity Report from the Energy Information Administration.

LNG Update

The Cameron LNG plant is scheduled to come online in 2018, but could be pushed back if the potential expansion is approved. The proposed facilities would be constructed within the existing LNG site. According to the FERC, five export facilities are currently being constructed in the U.S., and Cheniere’s (ticker: LNG) Sabine Pass is expected to come online in fiscal 2015.

An additional 14 export terminals have been proposed and are currently under review. Once the terminals are approved, their application is transferred to the Department of Energy (DOE), where a final decision is made after an environmental and economic review. The House of Representatives passed a bill in January (by a count of 277 to 133) that implements a 30-day deadline for the DOE to issue its decision.

Sempra’s partners on the Cameron LNG plant include GDF SUEZ S.A. (ticker: GSZ.PA), Mitsui & Co., Ltd. (ticker: TYO 8031) and Mitsubishi Corporation (ticker: TYO 8058), through a related company jointly established with Nippon Yusen Kabushiki Kaisha (ticker: TYO 9101). The plant is expected to create 3,000 construction jobs over the next four years and 200 full-time jobs in Texas and Louisiana, the company said in a news release.

The only other LNG plant scheduled to come online before Cameron is Dominion’s (ticker: D) Cove Point facility, located in Maryland. Freeport LNG in Texas is tentatively scheduled to be completed in late 2018, around the time Cameron’s first phase will be completed.

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