Sempra Energy International was awarded a 10-year agreement byMexico’s Federal Electricity Commission (CFE) to supply gas to thePresidente Juarez power plant in Rosarito, Baja California. Semprawill provide a complete energy supply package to the plant,including delivery of up to 300 MMcf/d of gas, transportationservices in the United States and construction of a 23-milepipeline from the U.S.-Mexico boarder to the plant. The value ofthe 10-year gas supply contract could approach $1 billion incurrent dollars.

Gas delivery is expected to begin in December 1999 to serve upto 1,500 MW of gas fired generation. “This project is a first forus in that it combines the strengths of several Sempra Energycompanies, bundling the construction of a major transmissionpipeline by one subsidiary with another subsidiary’s long-termsupply contract for a high volume of U.S. natural gas,” saidStephen L. Baum, Sempra Energy chief operating officer.

The pipeline and interconnection at the U.S.-Mexico border alsorepresent the initial step in making gas available for the firsttime to businesses and residents in Tijuana and nearby cities.Mexico’s Energy Regulatory Commission (CRE) has announced plans toopen bidding for a gas distribution system to serve the cities ofTijuana, Tecate, and Ensenada.

“The President Juarez supply contract is a significant milestonein the growth of our international gas trading business,” saidSteve Prince, CEO of Sempra Energy trading. “Our extensive tradingnetwork and our experience handling financial risk-managementcontracts for Mexican customers make us a logical choice foreproviding the CFE plant with a stable, long-term gas supply.”

Sempra Energy International is part of a consortium that lastyear brought gas to Baja California for the first time. Theconsortium operates gas distribution systems in Mexicali andChihuahua, Mexico.

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