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Start-up of Sempra's Cameron facility could be delayed to 2019

THE Sempra Energy-led Cameron liquefied natural gas export facility in Louisiana may not start up until 2019 rather than next year because construction work has fallen behind schedule, writes Caroline Evans.

The facility was originally expected to come online in early 2018, but that was later pushed back to the middle of next year after flooding at the project’s engineering, procurement and construction contractor's facilities in Louisiana.

The three-train LNG facility will have capacity to export 12 million tonnes per annum of LNG, or about 1.7 billion cubic feet of natural gas per day.

"We think it is reasonable to expect that Train 1 could be delayed into 2019, with Trains 2 and 3 following throughout 2019," Sempra Energy chief executive Debra Reed said on the company's second-quarter earnings call.

"All parties are focused on bringing the three trains into service as soon as practical," she added. Reed said the delays would have no effect on the company's financial guidance for 2018 and that the company does not expect any change in Cameron LNG's economics.

Reed also noted that CCJV, the CB&I-Chiyoda joint venture that is handling EPC work for Cameron LNG, has claimed it is owed an amount of money beyond the contract's value. However, Sempra has not yet been able to determine whether the claim is valid and is waiting on the joint venture partners to provide additional information.

Cameron LNG is a development led by Sempra and including LNG players GDF Suez, Mitsui and Japan LNG Investment — itself a joint venture between Mitsubishi and Nippon Yusen Kabashiki Kaisha.