Huge Baja Project May Chill Others' LNG Plans

Los Angeles Times ^ | October 9, 2006 | Gary Polakovic

[thackney]

Mexico's easier permit process allowed San Diego-based Sempra Energy to get a head start over those considering plants in California. By Gary Polakovic, Times Staff Writer October 9, 2006

In the high-stakes competition to import natural gas from across the Pacific to California, one San Diego-based company has such a commanding head start that it could determine whether others can stay in the race.

Being the first to open a marine terminal to process liquefied natural gas on the West Coast involves more than bragging rights. International companies are spending millions to get permits to build giant terminals in hopes of reaping billions in revenue.

But while other companies are mired in the morass of U.S. and California regulations, Sempra Energy Co.'s Costa Azul plant is already half-built, aided by political tailwinds and less red tape in Mexico. Twin dome-shaped natural gas storage tanks rise 180 feet above a rugged coastal strip about 14 miles north of Ensenada in Baja California.

The terminal is on track to begin processing 1 billion cubic feet of natural gas daily as early as 2008 — years ahead of the competition. Moreover, Sempra is aggressively pursuing more energy contracts with suppliers — enough to more than double the size of its processing plant — with plans to make the additional fuel available in 2010.

With its proximity to Southern California, the Sempra plant may alter the race to build other LNG terminals proposed along the coast, regulators and industrial officials say. Four such projects are seeking approval, but the California Energy Commission says they won't all be needed.

Some experts question whether any new projects will be needed, given the proposed expansion at Costa Azul.

[thackney]

While NIMBY's hold up projects on the US West Coast, Mexico moves ahead, making sure they can profit from our refusal to develop our own resources.

[marron]

The area south of Tijuana is turning into a significant industrial zone. Expect to see power plants built to use the natural gas, with electricity carried across the border into California. If you can't build in California, other alternatives become necessary.

[Carry_Okie]

While NIMBY's hold up projects on the US West Coast, Mexico moves ahead, making sure they can profit from our refusal to develop our own resources.

Just who do you think funds those NIMBY groups?

[Carry_Okie]

Expect to see power plants built to use the natural gas, with electricity carried across the border into California.

'Accept globalization or we'll cut off your food and water.'