Natural Gas Liquefaction Plant in Cameron Parish, Louisiana, to begin operation in 2017 and be fully operational in 2018 with more than 260 megawatts of power and an estimated 200 jobs
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 Cameron Parish, Louisiana. The completed Cameron LNG liquefaction facility will be composed 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.
An abundant supply of U.S.-produced natural gas has prompted energy companies to export the fuel, which must be converted to its liquid form for ease of transport and storage. Sempra Energy is developing a natural gas liquefaction export facility at its existing Cameron LNG receipt terminal to take advantage of this market opportunity.
Although Entergy Gulf States Louisiana currently provides electrical services to the existing Cameron LNG receipt terminal, the company originally planned to self-generate the 260 megawatts required by the new facility. Past experiences with unreliable electrical supply in similar projects overseas led the company’s new foreign investors to insist on control of the power supply.
The Cameron LNG project brings together a diverse array of companies all along the natural gas value chain. Cameron LNG is jointly owned by Sempra, GDF SUEZ, Mitsui and Japan LNG Investment, LLC, a company jointly owned by Mitsubishi Corporation and Nippon Yusen Kabashiki Kaisha (NYK).
The Entergy Business Development and Project Development Team, with special expertise in providing large project services, worked for six months with the Sempra investors to build relationships, explore all dimensions of their business needs and plan the best solution.
The Project Development Team developed a business case for Entergy’s reliable utility service and then held technical discussions with the Sempra investors to gain customer confidence regarding Entergy’s outstanding ability to provide highly reliable electric service.
Our business case included:
The company’s Contract Services Team worked collaboratively with Sempra Energy on the application of the rates and the rate analysis.
The end result demonstrated Entergy’s commitment to grid reliability, satisfied the customer’s internal investment approval process and secured a contract for electric utility service.
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 of the liquefaction facility.
Construction on the liquefaction project began in 2015 with the first train to commence operations in the second half of 2017 and all three trains to be in operation in 2018.
The Cameron LNG project will retain 60 existing jobs and create 140 new direct jobs, with salaries averaging $80,000 per year, plus benefits. Louisiana Economic Development estimates an additional 657 new indirect jobs will result in Southwest Louisiana and surrounding parishes, with the development of the new LNG facilities expected to generate 3,000 construction jobs in the region.