click to enlarge photo   
 
When completed in 2007, the Cameron LNG receipt facility in Louisiana will process 1.5 billion cubic feet (bcf) per day of natural gas for markets in the United States.


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"Our LNG business will shift into full gear this year,
with construction on our two receipt terminals
expected to be under way by mid-2004."

Sempra Energy International operates energy utilities and develops gas pipelines principally in Latin America. In Mexico, the company obtained 20-year contract commitments for nearly 100 percent of its Gasoducto Bajanorte natural gas pipeline capacity from major industrial users and power plants in the northern border region. Sempra Energy International's expert market knowledge and project management experience in Mexico has helped shape the success of other Sempra Energy projects in the region, including the Termoeléctrica de Mexicali power plant in Mexicali and the Energía Costa Azul LNG receipt facility north of Ensenada.

In 2003, we formally established a new business unit, Sempra Energy LNG, to oversee our LNG operations. Plans for the Energía Costa Azul LNG terminal and for the Cameron LNG facility in Louisiana result from our recognition three years ago of the growing imbalance between natural gas supply and demand in North America. We determined that LNG would be critical in addressing this imbalance and launched efforts to develop an LNG regasification business. The company expects to break ground on both LNG receipt terminals in mid-2004 and begin operations in 2007.

Working with our communities.
In our LNG initiatives—as in other endeavors—we have worked closely with local communities and key constituents to identify and resolve potentially difficult issues. These community efforts are part of every major project we undertake. They help to build trust and establish long-term relationships. Working closely with local communities also helps to ensure that we can address concerns before they become problems. A good example was the decision to build the Mexicali power plant, Termoeléctrica de Mexicali, to meet strict California environmental standards, even though Mexico did not require us to do so.