The U.S. Federal Energy Regulatory Commission approved a five‑year extension for Sempra’s Cameron LNG export facility in Louisiana, extending the project’s completion window to March 16, 2033. The decision allows the company to finish construction of the expanded train, secure financing, and manage construction risks while postponing the start of commercial LNG exports and the associated cash flows.
The extension gives Sempra additional time to address construction delays that arose during the expansion of the facility. Originally authorized to add two trains, the project was revised to a single 6.75‑Mtpa train (Train 4) after a permit revision in January 2022. The request for the current extension was filed in October 2025, reflecting the need to accommodate financing challenges and regulatory approvals that have slowed progress.
Investors reacted positively to the approval, with Sempra’s stock rising 1.5% on the day of the decision. The market view is that the extension solidifies the company’s position in the rapidly growing U.S. LNG export market and supports its long‑term growth strategy, even as the delay in commercial operations postpones expected cash flows.
Sempra’s financial profile shows strong revenue but rising debt and a declining operating margin over the past five years. The extension provides a longer window to manage debt service, improve leverage, and invest in operational efficiencies, mitigating the headwinds that have compressed margins. The company’s debt‑to‑equity ratio remains significant, so the additional time is viewed as a strategic buffer to strengthen balance‑sheet resilience.
The Cameron LNG facility, jointly owned by Sempra (50.2%), TotalEnergies, Mitsui & Co., and Japan LNG Investment, is a three‑train liquefaction plant with a current capacity of 12 Mtpa. The expansion will raise total capacity to approximately 21.7 Mtpa, positioning Sempra to capture a larger share of the projected U.S. LNG export growth, which the Energy Information Administration forecasts to rise from 11.4 billion cubic feet per day in 2024 to 28.7 billion cf/day by 2029. The extension aligns with this broader industry trend and reinforces Sempra’s role as a key player in the U.S. LNG export landscape.
The decision also highlights the regulatory scrutiny that large LNG projects face. Environmental groups, such as RESTORE, have raised concerns about air‑quality permit violations, underscoring the importance of compliance and project management for Sempra’s infrastructure portfolio. The extension therefore not only delays revenue but also provides the company with a critical period to address regulatory and environmental challenges while positioning itself for future market opportunities.
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