A strategic alliance between Sempra Energy Trading and recentlyformed MEG Marketing LLC of Georgia is targeting the Southeast witha stable of energy products and seeks to capitalize on MEG’s statusas a minority/woman-owned business.

The new alliance, which began April 1, will operate under thename MEG Marketing and will be based in Atlanta. Target customersare municipalities, federal and state government entities and majorcorporations. MEG will sell natural gas, electricity, crude oil andenergy-related products and services. Initial efforts will focus onthe eastern and southern regions of the United States. Terms of thedeal were not disclosed.

“This strategic alliance is part of our overarching strategy toexpand Sempra Energy Trading’s geographic footprint and generatenew business opportunities with municipalities and federal andstate government entities,” said David Messer, president of SempraEnergy Trading.

Sempra Energy Trading is one of the largest U.S. participants inmarketing and trading physical and financial energy productsincluding natural gas, power, crude oil and associated commodities.

While MEG Marketing will add new customers, Sempra will providecommodity supply and scheduling, as well as back-office technicaland operational support.

“As a licensed power and gas marketer, MEG is well-positioned totake advantage of the marketplace developments due to deregulationin the energy sector,” said Jeanne Simkins Hollis, CEO of MEGMarketing. “Our goal is to create a partnership capable of meetingthe changing needs of customers in a competitive energy market bycombining a culturally diverse, dynamic company with the financialand corporate strength of one of the nation’s leading energymarketers.” Hollis was a partner with Reid & Priest, aWashington, DC, law firm specializing in utility regulatory andprivatization law.

While Hollis said the alliance’s initial focus will be mainlysoutheastern states, she said New York and New Jersey also aretargeted. “I really consider us to be national in scope.” MEGintends to capitalize on its status as a certifiedminority/woman-owned business by targeting prospects who seeksuppliers with this designation. Hollis said more than 50% of MEG’sbusiness is expected to come from entities seekingminority/woman-owned business suppliers.

MEG currently has four employees, but Hollis said she hopes thestaff will grow to about 10 by the end of the year. Other alliancesalso are possible, she said.

Based in Atlanta, MEG Marketing, LLC, was established to sellnatural gas, electricity, crude oil and energy-related products andservices. Based in Stamford, CT, Sempra Energy Trading is one ofthe largest U.S. participants in marketing and trading physical andfinancial energy products, including natural gas, power and crudeoil. The company sold 5.8 Bcf/d in the first quarter, ranking 12thin physical sales volume in North America.

Joe Fisher, Houston

©Copyright 1999 Intelligence Press, Inc. All rightsreserved. The preceding news report may not be republished orredistributed in whole or in part without prior written consent ofIntelligence Press, Inc.