In response to the strong interest in siting multiple liquefied natural gas (LNG) terminals along the northern-most Pacific Coast of Baja, Mexico, North Baja Pipeline announced Monday its was holding an open season to solicit shipper interest in a potential expansion of the 220-mile international natural gas transmission pipeline running from the Arizona-California border south and west into Mexico. The open season runs through May 5, 2003.

Details on the open season are available at the North Baja Pipeline LLC web site (www.pge-northbaja.com) or the Gasoducto Bajanorte web site (www.gasducto-bajanorte.com). The potential size of the pipeline is dependent on what the market interest turns out to be, according to a spokesperson for one of the proponents, and the targeted start-up date is August 2006. LNG terminal proponents are still awaiting decisions on permits from the federal Mexican government.

The pipeline’s U.S. partners — Sempra Energy International and PG&E Gas Transmission — said they are contemplating an expansion into the Southwestern U.S. and Baja tied to the added gas supplies that could flow from several proposed LNG regasification terminals within about 60 to 80 miles of the U.S. border in North Baja.

They said the open season is being conducted by the combination of North Baja Pipeline LLC, a subsidiary of PG&E Gas Transmission Northwest; and by Gasoducto Bajanorte Pipeline, S de RL de CV and Transportadora de Gas Natural de Baja California, S de RL de CV, both subsidiaries of Sempra Energy International.

In a joint announcement, both PG&E and Sempra senior officials stressed North Baja’s central location with “high energy demand growth” projected for both sides of the border, combined with the LNG terminal proposals, one of which is from another Sempra unit. The pipeline, they said, is “ideally situated” to play a major role in transporting regasified LNG.

North Baja consists of an 80-mile segment in the U.S. near Ehrenberg, AZ, to the U.S.-Mexico border, and then running 140 miles through North Baja to an interconnection at Tijuana, Mexico. Running near its 500 MMcf/d capacity, the pipeline currently carries supplies from the Rockies and Southwest in the U.S.

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