Sempra to vastly expand capacity at Mexico LNG terminal - Upsize of project sought

San Diego Union - Tribune ^ | 3/13/06 | Elliot Spagat - ap

[NormsRevenge]

SAN DIEGO – Sempra Energy proposed Monday to more than double capacity at its liquefied natural gas terminal under construction in Mexico, strengthening its position in the race to build the first such plant on North America's Pacific coast.

Sempra is building in Mexico at a time when rivals seeking permission in California are stumbling over opposition from environmental and NIMBY – “not in my back yard” – groups.

The expansion plan is a response to “significant interest we have received from a number of potential natural gas producers and marketers,” said Darcel Hulse, president of Sempra's LNG unit. Sempra declined to name potential customers.

Sempra, based in San Diego, said it asked Mexican authorities for permission to raise daily production to 2.5 billion cubic feet from 1 billion at its plant in Ensenada, about 50 miles south of San Diego.

California currently consumes about 6 billion cubic feet of natural gas a day.

The plant is expected to open in 2008, and Sempra said the expansion may be completed in 2010. It said the precise scope of the expansion and the cost depends on customer interest.

Sempra plans to sell about half of initial production in the western United States and the other half in the Mexican state of Baja California. Company spokesman Art Larson said more information on where the additional capacity might be sold won't be disclosed until agreements are reached.

LNG is supercooled liquefied gas that is shipped from far-flung countries to coastline terminals, where it is heated, vaporized and fed into a pipeline. Sempra and other companies contend that LNG is key to keeping a lid on gas prices in the United States as domestic supplies dwindle.

U.S. regulators have approved nine coastal terminals in Texas, Louisiana and Massachusetts, but companies have struggled to find a home on the U.S. Pacific coast.

Mexico has approved two LNG terminals on its Pacific coast, one by Sempra and another by Chevron Corp., though Chevron hasn't begun construction. Sempra's expansion will have no impact on whether Chevron decides to build its terminal, said Chevron spokeswoman Margaret Cooper.

Bill Powers of the Border Power Plant Working Group, who has criticized Sempra's plans, said the energy giant's expansion may make it more difficult for rivals to justify building LNG terminals on the Pacific coast.

“They're way ahead of everybody else,” he said. “It could effectively kill the other projects. There isn't enough room.”

[Mike Darancette]

Bill Powers of the Border Power Plant Working Group, who has criticized Sempra's plans, said the energy giant's expansion may make it more difficult for rivals to justify building LNG terminals on the Pacific coast.

Boo freakin hoo, the Greenies have brought us one step closer to 100% dependency on foreigners.

I guess that Natural Gas from the Gulf will be shipped to Mexico to create energy for California.

[SierraWasp]

Looks like your communutty just about killed off Calpine in addition to killing their LNG terminal up there. Now we must go south of the border, down Mexico way...

[tubebender]

I could not believe how fast Calpine folded in the face of the anarchist's threats to sue until they run out of vacant court rooms.
Has Calpine filed bankruptcy yet?

[SierraWasp]

Yes, just like the Gray Davis they bet heavily upon, they are off the NYSE, (See CPNLQ) at $.23/share (a penny stock) and undoubtedly in Chapter 11 for a long time!!!

Another victim of their own greed and the Davis CA "Energy Crisis!" (set up during the Wilson administration, don't forget)

[Dog Gone]

The only reason this terminal is being built in Baja is because California's dopey politicians won't allow it to be built in that state.