TIDMTTA
Sempra Energy (NYSE: SRE) and Total S.A. (NYSE: TOT) today
announced that they have entered into a Memorandum of Understanding
(MOU) that provides the framework for cooperation in the
development of North American liquefied natural gas (LNG) export
projects. The scope of MOU covers continuing the development of the
Cameron LNG liquefaction-export project in Louisiana and Energía
Costa Azul (ECA) liquefaction-export project in Baja California,
Mexico.
The MOU between Sempra Energy and Total contemplates Total
potentially contracting 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 Cameron LNG Phase 2 and Energia Costa Azul
(ECA) LNG. Total, which is already a partner of Cameron LNG joint
venture with a 16.6% stake, also may acquire an equity interest in
ECA LNG.
"The U.S. is increasing its global leadership position in the
production of oil and natural gas", said Jeffrey W. Martin, CEO of
Sempra Energy. "In large measure, the next step in fulfilling our
country's energy potential is the development of critical export
infrastructure for LNG. Sempra Energy has a long-term goal of
developing more than 45 Mtpa of LNG export capacity in North
America. That is why our relationship with Total is so important.
We plan to leverage the competitive strengths of both companies to
accelerate development of North American LNG exports to global
markets."
"This relationship with Sempra Energy will support our goal of
building a diverse portfolio of LNG supply options that offers our
customers flexibility, reliability and low-cost North American
natural gas," said Patrick Pouyanné, chairman and CEO of Total S.A.
"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, but also participate in the
development of export capacity on the West Coast of Mexico, which
will benefit from synergies with existing infrastructure and from a
significant shipping cost advantage for customers in Asia."
The $10 billion Phase 1 of the Cameron LNG joint-venture
liquefaction-export project includes three liquefaction trains with
approximately 14 Mtpa of export capacity under construction in
Louisiana. Commissioning of the first train is now under way and
all three trains are expected to be producing LNG in 2019. Phase 2
of the Cameron LNG project, previously authorized by FERC and being
developed jointly by the Cameron LNG co-owners, encompasses up to
two additional liquefaction trains and up to two additional LNG
storage tanks with approximately 9 Mtpa of capacity.
ECA Phase 1 is a one-train facility with an expected total
export capacity of 2.5 Mtpa, utilizing the existing LNG receipt
terminal's tanks, loading arms and berth. ECA Phase 2 is expected
to have additional export capacity of 12 Mtpa of LNG. The ECA
project is located in Baja California, Mexico and will be supplied
with natural gas from the United States.
Development of LNG export facilities is subject to a number of
risks and uncertainties, including obtaining binding customer
commitments, required regulatory approvals and permits, securing
financing, completing the required commercial agreements and other
factors, as well as reaching a final investment decision. The
ultimate participation by Total remains subject to finalization of
definitive agreements, among other factors.
About Sempra Energy
In addition to the Cameron LNG project and ECA Phase 1 and 2,
Sempra Energy is also developing the Port Arthur LNG
liquefaction-export project in Texas, a facility with two
liquefaction trains capable of producing 11 Mpta of LNG.
Sempra Energy owns and operates natural gas and electric
distribution utilities and is a major developer of North American
energy infrastructure.
Sempra Energy, a San Diego-based energy services holding company
with 2017 revenues of more than $11 billion, is the utility holding
company with the largest U.S. customer base. The Sempra Energy
companies' approximately 20,000 employees serve more than 40
million consumers worldwide.
About Total
Total is the second largest publicly traded LNG player in the
world and a shareholder in 12 liquefaction facilities that
currently generate 25 percent of global LNG output.
With a portfolio of 15.6 Mtpa of LNG managed in 2017, Total is
one of the world's leading players in the sector, with solid and
diversified positions across the LNG value chain. Through its
stakes in liquefaction plants located in Qatar, Nigeria, Russia,
Norway, Oman, the United Arab Emirates, the United States,
Australia, Angola and Yemen, the Group sells LNG in all global
markets. Following the acquisition of Engie's LNG business, Total
became the second-largest private global LNG player among the
majors, with an overall LNG portfolio of around 40 Mtpa by 2020 and
a worldwide market share of 10 percent. LNG development is a key
element of the Group strategy, which is strengthening its upstream
positions in the major production regions with projects in Russia,
the Middle East, the U.S. and Australasia, as well as its
downstream positions in all markets.
Total is a global integrated energy producer and provider, a
leading international oil and gas company, a major player in
low-carbon energies. Our 98,000 employees are committed to better
energy that is safer, cleaner, more efficient, more innovative and
accessible to as many people as possible. As a responsible
corporate citizen, we focus on ensuring that our operations in more
than 130 countries worldwide consistently deliver economic, social
and environmental benefits.
* * * * *
Cautionary noteThis press release, from which no legal
consequences may be drawn, is for information purposes only. The
entities in which TOTAL S.A. directly or indirectly owns
investments are separate legal entities. TOTAL S.A. has no
liability for their acts or omissions. In this document, the terms
"Total" and "Total Group" are sometimes used for convenience where
general references are made to TOTAL S.A. and/or its subsidiaries.
Likewise, the words "we", "us" and "our" may also be used to refer
to subsidiaries in general or to those who work for them.This
document may contain forward-looking information and statements
that are based on a number of economic data and assumptions made in
a given economic, competitive and regulatory environment. They may
prove to be inaccurate in the future and are subject to a number of
risk factors. Neither TOTAL S.A. nor any of its subsidiaries
assumes any obligation to update publicly any forward-looking
information or statement, objectives or trends contained in this
document whether as a result of new information, future events or
otherwise.
Sempra EnergyMedia Relations:Doug Kline, (877)
340-8875orInvestor Relations:Patrick Billings, (877)
736-7727investor@sempra.comorTotalMedia Relations:+33 1 47 44 46
99presse@total.com@TotalPressorInvestor Relations:+44 (0)207 719
7962ir@total.com
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(END) Dow Jones Newswires
November 05, 2018 02:51 ET (07:51 GMT)
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