Although the proposed project is focused primarily on newelectric generation and large industrial/wholesale localdistribution loads, the backers of a proposed 212-mile natural gaspipeline from the Arizona-California border south into northernBaja, Mexico are testing potential market interest for thepipeline’s U.S. segment as part of an open season running throughJuly 14.

PG&E Corp.’s national energy group and Sempra EnergyInternational, along with Proxima Gas, SA de CV in Mexico, aresponsoring the pipeline proposal and an open season for nonbindingservice requests. Results of the market test will be relayed toindividual bidders July 21, the companies said last week in openingthe four-week market process.

The sponsors will seek binding expressions of interest fromvarious gas shippers by the end of September. If there issufficient interest, the companies said they would expand theircurrent plans by adding compression on the Mexican side of theborder.

Initial plans call for a 30-inch diameter pipeline and onecompressor (in Mexico), carrying up to 400 MMcf/d. A 77-milesegment will be built and operated in the U.S. by PG&E. Therest of the proposed pipeline – 135 miles – will be built andoperated in northern Mexico by Sempra Energy’s internationalsubsidiary and its Mexican partner.

At this point, the partners are willing to “consider viablerequests for service from delivery points all along the route,”said PG&E’s Peter Lund, vice president of pipeline developmentand marketing in the national energy group. Given the high energydemand growth in the region-particularly in northern Baja-PG&Eofficials said they expect “a strong market response.”

Potential customers interested in participating in the openseason should contact Henry Morse at the PG&E national energygroup (503-833-4108), or Ryan O’Neal at Sempra Energy International(619-696-4585) to receive a bid package.

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