Cameron Lng Tolling Agreement

Sempra Energy, GDF SUEZ S.A., Mitsubishi Corporation and Mitsui & Co. announced that they have signed 20-year toll capacity and joint venture agreements to support the development, financing and construction of a liquefied natural gas (LNG) export plant at the Site of the Cameron LNG Receiving Terminal in Hackberry, La. The commissioning of the commercial operation under the Cameron LNG toll agreements follows the shipment in June 2019 of the first liquefied natural gas (LNG) commissioning load of the same train that was the precursor to its completion. The commercial operation of Train 3 marks the beginning of all execution rate revenues under Cameron LNG`s toll agreements. The facility is expected to generate a cash flow of nearly $12 billion over the 20-year term of the contract, after Sempra Energy`s debt service. SAN DIEGO, Aug. 10, 2020 /PRNewswire/ — Sempra LNG, a subsidiary of Sempra Energy (NYSE: SRE), today announced that the Cameron LNG export plant in Hackberry, Louisiana, has begun full operation under the Cameron LNG toll agreements. The joint venture agreement provides that GDF SUEZ`s subsidiaries, Mitsubishi (through a related company founded jointly with Nippon Yusen Kabushiki Kaisha) and Mitsui will each acquire 16.6% of the shares in the existing facilities and the liquefaction project. A subsidiary of Sempra Energy retains 50.2 per cent. The toll agreements are the full signalling capacity of the facility with three trains and 13.5 million tons per year (Mtpa), which will offer an export capacity of 12 Mtpa LNG, or about 1.7 billion cubic feet per day (Bcfd) and a total capacity of 1.5 Bcfd. Any toll agreement applies to 4 Mtpa. The agreement allows CCJV to obtain incentive bonuses for the realization of construction and commissioning miles on certain dates for the second and third trains. The second and third trains of the Cameron LNG project are expected to start production in the first quarter and second quarter of 2020 respectively.

Last month, the company reached an agreement with McDermott International and Chiyoda International to accelerate the completion of the first phase of the Cameron LNG project. McDermott and Chiyoda are, through their joint venture CCJV, the engineering, purchasing and construction contractors for the Cameron LNG export project. Factors that could cause our actual results and future actions to differ materially from future results and actions described in the forward-looking statements include, among other things, risks and uncertainties regarding decisions, investigations, rules, the granting of authorizations and other authorizations, and other actions taken by the United States. . . .

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