SOURCE: Sempra Energy
May 15, 2008 09:00 ET
Sempra Energy's New Baja California LNG Terminal Ready for Commercial Operations
Facility Is First LNG Receipt Terminal on West Coast of North America
SAN DIEGO, CA--(Marketwire - May 15, 2008) - Sempra LNG, a subsidiary of Sempra Energy
(NYSE: SRE), today announced that its Energía Costa Azul liquefied natural
gas (LNG) receipt terminal in Baja California, Mexico, has successfully
completed all performance testing and is ready for commercial operations.
Located 14 miles north of Ensenada, Energía Costa Azul is the first LNG
receipt facility on the West Coast of North America.
Over the past month, a variety of start-up and commissioning activities
have been under way at Energía Costa Azul, including receiving the
facility's first two LNG cargoes.
"Energía Costa Azul is the largest capital project in our company's 10-year
history thus far and part of our ongoing plan to develop critically needed
natural gas infrastructure throughout North America," said Donald E.
Felsinger, chairman and chief executive officer of Sempra Energy.
"The start of operations at Energía Costa Azul represents the culmination
of seven years of development activity involving the acquisition of permits
and commercial contracts, construction, start-up and testing," said Darcel
L. Hulse, president and chief executive officer of Sempra LNG. "The
journey from an idea to a whole new business has been both challenging and
Energía Costa Azul's first cargo of imported natural gas arrived April 18
aboard the Al Safliya, a new, state-of-the-art LNG carrier from Qatar. A
second LNG ship, the Bluesky, arrived at Energía Costa Azul May 6 with a
cargo of LNG from Trinidad. The stringent performance testing is now
complete and the terminal has successfully met all of its design criteria.
The terminal is fully contracted and capable of processing 1 billion cubic
feet per day (Bcf/d) of natural gas, with room for expansion. While Sempra
LNG owns 100 percent of the facility, the company is leasing half of
Energía Costa Azul's processing capacity to Shell International Gas Limited
20-year agreement. Sempra LNG's half of the capacity at Energía Costa Azul
will be supplied from a new liquefaction facility nearing completion at
Tangguh, Indonesia. Shipments from the Indonesian facility should begin
arriving in the second quarter of 2009.
The natural gas processed at Energía Costa Azul will be used in Baja
California and the U.S. Southwest. Natural gas from the terminal will meet
applicable Mexico and U.S. gas pipeline quality standards.
A second Sempra LNG receipt terminal, Cameron LNG, is under construction
near Lake Charles, La. The project, capable of processing 1.5 Bcf/d, is
slated for completion by the end of the year.
LNG is simply natural gas in liquid form. To reach a liquid state, natural
gas must be cooled. The liquid gas is then transported aboard specially
designed carriers for delivery to receipt terminals. These receipt
terminals store LNG, return it to its gaseous state and dispatch it into
pipelines for customer use. In LNG's 45-year shipping history, LNG
carriers have traveled more than 100 million miles without a major
Sempra LNG develops and operates LNG receipt terminals serving North
American markets. Sempra Energy, based in San Diego, is a Fortune 500
energy services holding company with 2007 revenues of more than $11
billion. The Sempra Energy companies' 13,500 employees serve more than 29
million consumers worldwide.
Sempra LNG is not the same company as the utilities, SDG&E or SoCalGas, and
is not regulated by the California Public Utilities Commission.
This press release contains statements that are not historical fact and
constitute forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. When the company uses words like
"believes," "expects," "anticipates," "intends," "plans," "estimates,"
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