Planned expansion will add up to 200 megawatts of peak demand
Baton Rouge, La. – Entergy Gulf States Louisiana, L.L.C.
signed a commercial and contractual agreement with Sempra Energy’s Cameron LNG
unit to supply up to 200 megawatts of additional power to the proposed Cameron
LNG liquefaction project in Hackberry.
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 Hackberry. Entergy Gulf States Louisiana currently provides
electrical services to the existing Cameron LNG terminal.
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 the liquefaction
facility will generate.
“We are pleased we can further extend our relationship
with Entergy to provide electric power to the new liquefaction facility,” said
Octavio M.C. Simoes, president of Sempra Energy’s LNG operations. “Entergy is a
staunch supporter of economic development in Southwest Louisiana and understands
the benefits our project brings to the region.”
The completed Cameron LNG liquefaction facility is
expected to be comprised 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.
Construction on the liquefaction project is expected to start in 2014 with the
first train to commence operations in the second half of 2017 and all three
trains in 2018.
The Federal Energy Regulatory Commission recently
announced the environmental review and permitting schedule for the project.
Cameron LNG is the only proposed LNG export application currently pending before
the FERC to have reached this milestone in the permitting process.
“We are always looking for opportunities to attract new
businesses and retain and grow existing businesses in our service area,” said
Phillip May, president and chief operating officer of Entergy Louisiana, LLC and
Entergy Gulf States Louisiana. “This agreement with Cameron LNG to power their
facility expansion is a perfect example of how our economic development efforts
support the region’s – and the state’s – economy, growth and business
Entergy Corporation was recognized as one of the top 10
utilities in North America for its work to support economic development in Site
Selection magazine’s September 2012 issue. In its list of economic development
highlights from the previous year, Site Selection credited Entergy’s work in
Louisiana to identify and qualify new target industries and champion eight sites
that were ultimately certified by Louisiana Economic Development as ready for
Entergy''s Louisiana utility companies serve more than one
million customers through the operating companies Entergy Louisiana, LLC and
Entergy Gulf States Louisiana, L.L.C. With operations in southern, central and
northeastern Louisiana, the companies are part of Entergy Corporation''s electric
system serving 2.8 million customers in Louisiana, Arkansas, Mississippi and
Cameron LNG is a subsidiary of Sempra Energy (NYSE: SRE),
a Fortune 500 energy services holding company based in San Diego with 2012
revenues of approximately $10 billion. The Sempra Energy companies'' nearly
17,000 employees serve more than 31 million consumers worldwide.
For more information, visit www.Cameron LNG.com.