Japan's Mitsui is deepening its partnership with US liquefaction player Sempra Energy under a preliminary agreement announced Monday.

Under the terms of the non-binding memorandum of understanding, Mitsui may purchase of up to one-third of the available capacity of a planned expansion at the Sempra-led Cameron LNG facility in Louisiana.

Mitsui is already an equity owner of Cameron LNG, the development company for the Cameron LNG base project encompassing three trains, and the Phase 2 expansion which would add another two trains.

The MOU also contemplates the the potential offtake by Mitsui of about 1 million tonnes per annum of LNG and equity participation in a future expansion of the Energia Costa Azul LNG export terminal in Baja California, Mexico.

The facility is being developed with Sempra's Mexican subsidiary, IEnova. The first phase of the project includes one liquefaction train with an export capacity of about 2.4 million tpa, while the expansion envisages "additional trains with an expected export capacity of approximately 12 million tpa," according to a release.

Sempra recently told Upstream that it hoped to take a final investment decision on Energia Costa Azul by the end of 2019.

The announcement comes nearly one year after a heads of agreement between Sempra and Mitsui to pursue a sale and purchase agreement for Energia Costa Azul.

According to the release, the companies are currently working to negotiate and finalise a definitive 20-year contract for the potential purchase of 800,000 tpa of LNG from the first phase of the Energia Costa Azul project.

"This agreement signals continued momentum in the growing US liquefied natural gas export market, while reinforcing the unique competitive advantage that Sempra offers customers seeking LNG export capabilities from the Gulf Coast, as well as the West Coast of North America," said Sempra LNG president Justin Bird.

"We are pleased to expand our relationship with Mitsui and advance the development of both LNG projects."

LNG

Sempra, Mitsui ink LNG expansion pact