Gazprom Group inks deal with Sempra LNG for deliveries to U.S. Gulf Coast Terminal
Gazprom Global LNG to send supplies to Sempra LNG’s Cameron LNG Terminal
London and San Diego, April 22, 2010 – Gazprom Global LNG Limited (“GGLNG”) and Sempra LNG, a subsidiary of Sempra Energy (NYSE:SRE), today signed an agreement that will allow GGLNG to supply liquefied natural gas (LNG) to Sempra LNG’s receipt terminal in Lake Charles, La., near the U.S. Gulf Coast. The agreement provides GGLNG with another route to supply the United States with LNG from its growing portfolio and provides the Cameron LNG terminal with natural gas for the U.S. Gulf Coast and East Coast.
Under the terms of this multi-year agreement, GGLNG will pay Sempra LNG for the right to sell and deliver up to two LNG cargoes per month to the Cameron LNG terminal at a pre-determined price formula. The deal will commence in June 2010.
“We are very excited about the deal, which will help Gazprom group achieve its goal of expanding its LNG portfolio in the Atlantic Basin,” Frederic Barnaud, President and Managing Director of GGLNG said. “This arrangement also provides Sempra LNG with access to additional LNG supplies. Our agreement is another important milestone in the growing relationship between Gazprom group and Sempra LNG.”
In April 2009, Gazprom affiliates, under long-term assignment from Royal Dutch Shell, took capacity in Sempra LNG’s Energía Costa Azul LNG terminal in Baja California, Mexico (the first LNG receipt terminal built on the west coast of North America) and downstream gas pipelines. This capacity provides an outlet for Russian LNG to access markets in Mexico and the southwestern U.S.
“We are pleased to expand our business relationship with Gazprom, the world’s largest producer of natural gas,” Darcel L. Hulse, President and Chief Executive Officer of Sempra LNG commented.
About Gazprom Global LNG
Gazprom Global LNG Limited (“GGLNG”) is a UK-registered 100%-owned subsidiary of OAO Gazprom, the world’s largest gas company by asset base, accounting for 17% of the world’s total natural gas reserves and for about 70% of natural gas reserves in Russia. GGLNG is headquartered in London and was established in 2008 to develop and grow Gazprom’s world-wide LNG activities.
GGLNG is responsible for aggregating and optimizing Gazprom’s LNG supplies and entering new markets through its LNG marketing and trading activities.
About Sempra LNG
Sempra LNG develops and operates LNG receipt terminals serving North American markets. Cameron LNG, which began commercial operations in July 2009, is capable of processing 1.5 billion cubic feet per day (Bcf/d) of natural gas. Sempra LNG’s other receipt terminal, Energía Costa Azul, commenced operations in May 2008 and is capable of processing 1.0 Bcf/d. This project’s capacity is fully subscribed.
Sempra LNG is a subsidiary of Sempra Energy, a Fortune 500 energy services holding company based in San Diego with 2009 revenues of more than $8 billion.
This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by words like “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “may,” “would,” ”could,” “should,” or similar expressions, or discussions of strategies, plans or intentions. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Future results may differ materially from those expressed in the forward-looking statements. Forward-looking statements are necessarily based upon various assumptions involving judgments with respect to the future and other risks, including, among others: local, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions by the California Public Utilities Commission, California State Legislature, California Department of Water Resources, Federal Energy Regulatory Commission, Federal Reserve Board, and other regulatory and governmental bodies in the United States, the United Kingdom and other countries; capital market conditions and inflation, interest and exchange rates; energy and trading markets, including the timing and extent of changes and volatility in commodity prices; the availability of electric power, natural gas and liquefied natural gas; weather conditions and conservation efforts; war and terrorist attacks; business, regulatory, environmental and legal decisions and requirements; the status of deregulation of retail natural gas and electricity delivery; the timing and success of business development efforts; the resolution of litigation; and other uncertainties, all of which are difficult to predict and many of which are beyond the control of the company. These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the Securities and Exchange Commission. These reports are available through the EDGAR system without charge at the SEC’s Web site, www.sec.gov and on the company’s Web site, at www.sempra.com.
Sempra Pipelines & Storage, Sempra Generation, Sempra LNG and Sempra Commodities are not the same companies as the utility, San Diego Gas & Electric (SDG&E) or Southern California Gas Company (SoCalGas), and Sempra Pipelines & Storage, Sempra Generation, Sempra LNG and Sempra Commodities are not regulated by the California Public Utilities Commission.
CategorySempra Energy , Sempra LNG