TotalEnergies and Sempra expand collaboration to meet rising energy demand

French energy giant TotalEnergies and US-based Sempra Energy have signed a Heads of Agreement (HOA) for the expansion of Cameron LNG, a liquefied natural gas (LNG) production and export facility in Louisiana, the company said in a statement on Tuesday.

The collaboration also involves Mitsui & Co. Ltd. and Japan LNG Investment – a company jointly owned by Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha (NYK), and aims to improve energy supplies and reduce Europe’s reliance on Russian oil and gas imports.

“We are pleased to take this new step with our partners to increase liquefaction capacity at Cameron LNG… In recent years, TotalEnergies has become the leading exporter of US LNG, most of which has been exported to Europe in recent times, contributing to the continent’s security of energy supply,” Patrick Pouyanné, Chairman & CEO of TotalEnergies, said in a statement.

“TotalEnergies is committed to further expanding its presence in the United States, thus meeting the growing need for LNG, a key transition fuel,” he added.

The agreement includes the development of a fourth train with a production capacity of 6.75 million metric tons per annum (Mtpa) at the Louisiana facility, and a 5 percent increase of the current 13.5 Mtpa first three trains through debottlenecking, TotalEnergies said.

The expansion will also include design enhancements to lower emissions at the facility, including electric drive technology TotalEnergies will offtake 16.6 percent of the projected fourth train’s production capacity, and 25 percent of the projected debottlenecking capacity.

Cameron LNG has also selected two contractors to conduct a competitive Front End Engineering Design (FEED) in view of the selection of the Engineering, Procurement and Construction (EPC) contractor, the company said.

The project remains subject to definitive agreements, obtaining the necessary permits, and all partners reaching a final investment decision planned for 2023, TotalEnergies said.