Sempra Energy LNG Corp. is expected to sign a final agreement as early as Monday with the government of Indonesia on a 20-year liquefied natural gas (LNG) supply agreement, according to Indonesia’s energy minister. In August, Sempra said that it was close to finalizing the deal, which would give it gas to supply its planned Baja California, Mexico LNG terminal.

The Sempra subsidiary inked a preliminary agreement with BPMigas, Indonesia’s executive agency for oil and natural gas and BP Indonesia last December to purchase LNG supplies for the planned Baja terminal.

The preliminary agreement called for 1.7 million tonnes (600 MMcf/d) of LNG to be delivered annually to the Baja terminal, which would be located near Ensenada, Baja California, from the Tangguh fields in Indonesia. Sempra’s proposed $600 million project was originally targeted for service in 2007, and would have the capability to import and process 1 Bcf/d for expanding power generation markets in northern Mexico and Southern California.

Sempra already has been given environmental clearance for the LNG facilities from Mexican authorities. It was the first environmental and risk-assessment permit issued for an LNG project in Baja California and the first LNG permit awarded on the Pacific Coast.

The Tangguh LNG liquefaction project in Indonesia, which is targeting a two-train start-up, is being constructed by a consortium led by BP Indonesia, which has a 37.16% stake as a contractor to BPMigas.

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