Sempra Energy Trading entered into a one-year, $30-$35 milliongas management contract with California’s Department of GeneralServices (DGS) yesterday. Under the terms of the contract, SempraEnergy Trading will provide natural gas management for a total of117 state government buildings including San FranciscoInternational Airport.

Total usage for all the facilities covered under the agreementis estimated at nearly 15 Bcf over the next year, said AlexHemerick, a Sempra spokesperson. Estimated usage is 11.4 Bcf forthe 83 facilities in northern California and 3.4 Bcf for the 34facilities in southern California. Besides the San Franciscoairport, the agreement covers other state facilities including SanQuentin Prison, many campuses of the University of California andCalifornia State University school systems, major hospitals, cityhalls, prisons and community colleges.

The agreement with the DGS is significant for Sempra EnergyTrading, because it increases its presence in the home state of itstwo utility affiliates, San Diego Gas & Electric and SouthernCalifornia Gas Co. Including the DGS agreement, Sempra EnergyTrading currently is involved with 12 energy management contractsin the state, Hemerick said.

California is not the company’s sole focus, however. At thebeginning of the summer, the Stamford, CT-based company signed amarketing agreement with MEG Marketing to develop its energy andenergy-related products and service businesses to municipalities aswell as state and federal government entities in the southeastern areaof the U.S (See Daily GPI, June 10).

The DGS serves as the state of California’s business managerwith responsibilities that include planning, construction,maintenance and purchasing. The DGS coordinates a statewide gasprocurement program called the Natural Gas Services (NGS) program,which is an aggregator of large public sector non-core and corenatural gas end-users in California.

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