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Sempra's Billion Dollar Mexican Supply Project Advances

Sempra's Billion Dollar Mexican Supply Project Advances

Mexico's Comision Reguladora de Energ­a (CRE) granted a permit to Transportadora de Gas Natural de Baja California, a subsidiary company of U.S.-based Sempra Energy International, for transporting gas to the Presidente Juarez thermoelectric station in Rosarito, Baja California. The pipeline is part of a ten-year gas supply contract valued at close to a billion dollars. Enova and Pacific Enterprises (now combined to form Sempra) won the bid for gas to supply the generating station. The projected 30-inch diameter pipeline will span 23 miles and is designed to operate with a compression capacity of 810 MMcf/d and operative capacity of 270 MMcf/d.

Gas will be supplied from Southern California to the San Diego-Tijuana area of the U.S.-Mexico border connection by another subsidiary, San Diego Gas and Electric (SDG&ampE). Sempra, along with the Mexican company Pr›xima, are the distributors in the Mexicali and Chihuahua geographic zones, where they will invest nearly US$64 million in 994 miles of pipelines that will reach nearly 77,000 residential, industrial and commercial users over the next five years.

Last August, Sempra was awarded a 10-year agreement by the Mexican Federal Electric Commission (CFE) to supply gas to the Presidente Juarez plant. The company is to provide a complete energy supply package for the power plant, including up to 300 MMcf/d of gas, transportation services in the United States and construction of the 23-mile pipeline from the U.S.-Mexico border to the plant. In today's dollars, the value of the 10-year gas supply contract could approach $1 billion. Delivery of gas is expected to begin in December, enabling the CFE to serve up to 1,500 MW of new gas-fired generation at the Presidente Juarez power plant.

Joe Fisher, Houston

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