Entergy Gulf States signs Sempra supply contract

Entergy Gulf States Louisiana LLC has signed a contract with Sempra Energy’s Cameron LNG unit to supply up to 200 megawatts of additional power to the proposed liquefaction project in Hackberry.

In 2012, Sempra Energy announced plans to develop a natural gas liquefaction export facility at the site of its existing Cameron LNG receipt terminal in Hackberry. Entergy Gulf States Louisiana currently provides electrical services to the terminal.

The power contract between Entergy Gulf States Louisiana and Cameron LNG is for 30 years, with a 10-year initial term and automatic renewals for four successive five-year terms. Entergy plans to upgrade its electric transmission system to meet the increased demand for the liquefaction facility.

The investment in the liquefaction project is estimated between $6 billion and $7 billion. Construction is expected to start in 2014, with the first unit to start operations in the second half of 2017 and two other in 2018.