Although none of the public proponents of liquefied natural gas (LNG) terminals on north Baja California’s west coast in Mexico have permits from the Mexican government as yet, environmental issues and processing questions are being raised south of the U.S. border, according to a report Tuesday in the Los Angeles Times. One of the LNG terminal sponsors, El Paso Natural Gas, downplayed a recent local land-use permit denial from the Rosarito municipal government in which El Paso has a 100-acre proposed terminal site.

The onus is on El Paso and its partner, Phillips Petroleum Co., to convince the local residents, according to the Rosarito mayor, who said the permit denial was not final, according to the LA Times report. El Paso officials were quoted as saying the partners still hope to get all the permits they need on both sides of the border to start construction before the end of next year.

At least a half-dozen major energy companies have made three different LNG terminal proposals for Baja California. Most recently San Diego-based Sempra Energy and CMS Energy of Dearborn, MI, announced plans to build a terminal south of Rosarito, about 60 miles from the U.S. border. Neither El Paso or Sempra have requested a permit from the Mexican federal government because there is no permitting process yet established for LNG facilities in Mexico.

Other companies that have publicly said they are looking at the possibility of developing an LNG terminal in Baja California are Chevron , British Petroleum and Royal Dutch/Shell Group. The Mexican government has said Baja California could possibly support two facilities, but it is expected that the first terminal to be launched with have a major advantage for West Coast LNG trade.

Proponents envision up to 1 Bcf/d of supplies being moved through one or more terminals in Baja California.

This year’s renewed interest in LNG on the west coast of North America is the first serious move for new U.S.-based processing plants since a partnership between affiliates of Pacific Gas and Electric Co. and Southern California Gas Co.in the late 1970s proposed building a receiving terminal on the California coast about 40 miles west of Santa Barbara. That project anticipated supplies coming from Indonesia and Alaska, but it was abandoned because of a combination of local environmental concerns and economics turning against the import of supplies.

©Copyright 2001 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.