TOKYO--Partners in the $10 billion Cameron liquefied natural gas
project in Louisiana have finalized their plans to invest, giving
the official green light to go ahead with the project, after
securing $7.4 billion in bank loans. The decision is the first out
of three U.S. LNG exporting projects in which Japanese companies
have stakes.
The announcement by the four partners--San Diego-based Sempra
Energy, Mitsui & Co., GDF Suez SA of France and a joint venture
between NYK Line and Mitsubishi Corp.--comes amid growing concerns
over how many proposed LNG projects will be realized amid continued
cost overruns and intensifying competition. Just in late July,
Houston-based Apache Corp. said it plans to exit two LNG projects:
Wheatstone in Australia and Kitimat in Canada.
The Cameron project is 50.2% owned by Sempra, while the three
other partners have each have a 16.6% stake. The project will soon
start construction of liquefaction facilities that will have the
capacity to produce 12 million metric tons a year of LNG. Mitsui,
NYK-Mitsubishi and GDF will each take four million tons a year. The
eight million tons taken by the Japanese parties represent nearly
10% of Japan's annual LNG demand. The project is scheduled to start
commercial operation in 2018.
Write to Mari Iwata at mari.iwata@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires