By OGJ editors
HOUSTON, Oct. 26 -- Sempra LNG, San Diego, and Algeria's state-owned Sonatrach SA have signed a heads of agreement (HOA) and are proceeding with detailed negotiations to bring Algerian natural gas to the US Gulf Coast.
The companies will also examine additional opportunities to market the gas in the US.
The nonbinding HOA includes consideration of a 20-year agreement to import 250-500 MMcfd of Algerian LNG at Sempra's Cameron LNG receipt terminal under development near Lake Charles, La. (OGJ Online, Aug. 2, 2005).
Sempra LNG currently is developing three LNG receipt terminals in North and Central America. The Energia Costa Azul terminal in Baja California, Mexico, for which construction started in March, is on schedule to be operational by early 2008. The Cameron LNG terminal is scheduled to be commissioned later that year, and the third terminal near Port Arthur, Tex., is in the process of acquiring approval from the US Federal Energy Regulatory Commission and could be operational in 2009.
Algeria plans to build two new plants with a total capacity of 8.5 million tonnes/year near existing facilities in Skikda (4.5 million tpy) and Arzew (4 million tpy).
