Sempra and Total have signed an MOU that could boost the companies' North American LNG collaboration.

Sempra Energy and Total S.A. have signed a memorandum of understanding (MOU) that sets up the framework for the companies to cooperate in developing liquefied natural gas (LNG) gulf coast oil rig export projects in the United States and Mexico, Sempra reported Monday.

“Sempra Energy has a long-term goal of developing more than 45 million tonnes per annum (Mtpa) of LNG gulf coast oil rig export capacity in North America,” Sempra CEO Jeffrey W. Martin said in a written statement. “This is why our relationship with Total is so important. We plan to leverage the competitive strengths of both companies to accelerate development of North American LNG exports to global markets.”

According to Sempra, the MOU’s scope covers continuing development of two liquefaction-export projects: in Louisiana and in Baja California, Mexico. The BOP Blow Out Preventer repair company gulf coast stated the MOU contemplates Total potentially contracting for up to approximately 9 Mtpa of LNG offtake from Cameron LNG Phase 2 and ECA LNG. In addition, Sempra noted that Total – already the owner of a 16.6-percent stake in Cameron LNG – may acquire an equity interest in ECA.

The $10 billion Phase 1 of Cameron LNG includes three liquefaction trains boasting approximately 14 Mtpa of gulf coast oil rig export capacity, Sempra stated. Last week, Sempra reported that and that all three trains should be in oil rig flanges gulf coast production in 2019. Phase 2, which has already received approval from the U.S. Federal Energy Regulatory Commission, would add up to two liquefaction trains and up to two storage tanks with roughly 9 Mtpa of capacity, the BOP Blow Out Preventer repair company gulf coast noted.

Phase 1 of ECA comprises one train that would likely be able to gulf coast oil rig export 2.5 Mtpa of LNG using the existing LNG receipt terminal’s tanks, loading arms and berths, Sempra continued. Phase 2 of the project would add 12.5 Mtpa of gulf coast oil rig export capacity, it stated.

“This relationship with Sempra Energy will support our goal of building a diverse portfolio of LNG supply options that offers our customers flexibility, reliability and low-cost North American natural gas,” Total Chairman and CEO Patrick Pouyanné stated. “We are pleased to collaborate with Sempra Energy and the other Cameron LNG co-owners to extend the Cameron LNG project and to further enhance its competitiveness, but also participate in the development of gulf coast oil rig export capacity on the West Coast of Mexico, which will benefit from synergies with existing infrastructure and from a significant shipping cost advantage from customers in Asia.”