The final local permit from the city of Ensenada was obtained Friday by Sempra Energy enabling the company to plan to start construction early next year on its Costa Azul liquefied natural gas (LNG) receiving terminal along the Pacific Coast of North Baja, Mexico, according to a report over the weekend in the Los Angeles Times. Sempra made no formal announcement, although it has a conference call scheduled for Thursday to report third quarter financial results.

Despite the clearing of the project’s last regulatory hurdle, local residents led by a real estate developer in the area, which is a haven for American second-home buyers, vowed to keep trying to stop the terminal from being built at its currently designated site north of Ensenada, the LA Times reported.

Located on a 400-acre site that the company describes as remote — 14 miles north of Ensenada — the $600 million project, including connecting, large-diameter transmission pipelines, would process up to 1 Bcf/d of supplies, split between Indonesia and Russia’s Skakhalin Island that Sempra’s development partner Royal Dutch/Shell Group owns (see Daily GPI, Oct. 13).

“New gas supply is needed in Mexico, because major growth in industrial and commercial businesses, as well as new power plants to serve the growing population, will create an immediate need for 500 MMcf/d, half the capacity of the receipt terminal,” Sempra said as part of its project description. “The remaining capacity of 500 MMcf/d can become an alternative source of supply for California and Southwestern U.S. gas markets until the Baja California market grows to consume the plant’s full output.”

In the Times‘ report, Sempra CEO Steve Baum declared that his company has “won the race” to site the first LNG receiving terminal on the West Coast of North America. “It has been a long process, but all the pieces are in place,” noting the final hurdle was the Ensensada city permit. Enesnada’s Mayor Jorge Antonio Catalan was quoted as touting the project for its job creation and “sustainable development” aspects.

Local opposition led by Roberto Valdez, a developer of the Bajamar residential complex, cited safety and environmental concerns as reasons to push LNG terminals to another area. The opponents reportedly have filed lawsuits in Mexico City to reverse the Mexican regulatory approvals for the Sempra project. They have also requested hearings by the California Public Utilities Commission, which Sempra said has not jurisdiction over the Mexican-based project (see Daily GPI, Oct. 15).

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