TotalEnergies plans to increase production capacity at the Cameron LNG plant in Louisiana in the United States, the French supermajor announced on Monday, as the United States seeks to increase LNG shipments to Europe to help it reduce its dependence on Russian gas.
As part of a recent memorandum of understanding signed with the other partners of the Cameron LNG project, TotalEnergies will expand the plant with a fourth production train with a production capacity of 6.75 million metric tons per year ( mtpa). This would represent a 5% increase from the current first three trains of 13.5 Mtpy thanks to debottlenecking.
Cameron LNG is jointly owned by Sempra Infrastructure (50.2%), TotalEnergies (16.6%), Mitsui & Co., Ltd. (16.6%) and Japan LNG Investment (16.6%).
Under the terms of the agreement, TotalEnergies will take 16.6% of the planned production capacity of the fourth train and 25% of the planned debottlenecking capacity.
TotalEnergies, the world’s largest exporter of US LNG in 2021, is the world’s second-largest LNG trader, with a market share of around 10%, according to the company.
The French major also announced today that Cameron LNG is advancing the development of this project with the selection of two contractors to conduct a competitive front-end engineering design (FEED) for the selection of the engineering contractor, Procurement and Construction (EPC).
The development of the Cameron LNG expansion project remains subject to definitive agreements, the receipt of necessary permits and the taking by all partners of a final investment decision expected in 2023.
Late last month, a month after the Russian invasion of Ukraine, the European Union and the United States announced an agreement for more exports of American liquefied natural gas to the EU, with the latter seeking to replace Russian supplies, on which it depends. .
Under the terms of the deal, the United States will deliver at least 15 billion cubic meters of liquefied natural gas to the EU this year, more than expected, the White House said in a fact sheet.
By Tsvetana Paraskova for Oilprice.com