Taking the view that its approved liquefied natural gas (LNG) terminals awaiting construction in Louisiana and North Baja can access gas supplies literally anywhere in the world, Sempra Energy has talked with “everyone in the world that has stranded supplies and would like to look at the United States as a marketplace,” according to Don Felsinger, who heads Sempra’s global business unit.

Responding to analyst questions in an earnings conference call last Thursday, Felsinger said Sempra has “several” additional potential LNG sites it is pursuing.

“It is becoming more apparent to potential suppliers, that Sempra now has the lead in terms of permit approvals (from federal Mexican and U.S. regulators),” said Felsinger, noting Sempra has narrowed down potential suppliers to about five for both the Costa de Azul project on the Pacific Coast of North Baja, and the Cameron, LA, site on the Gulf of Mexico.

“The time requirement to put together 20-year, buy-sell agreements is quite rigorous and lengthy, but with that being said, I would expect some time in the fourth quarter this year or early next year we will be announcing contracts for both of those facilities,” said Felsinger.

“We are continuing to reassess the market and what LNG volumes will be required over the next 10 years, and determining where we would position ourselves beyond these two projects, but we have made no other announcements at this time. We’re still very enthused about the opportunity for LNG to solve the current gas price/supply crisis in North America, so we have several other sites we are pursuing, but have nothing to announce yet.”

Sempra is contemplating having the “alternative” of project financing, he said, for all of its LNG ventures.

Sempra’s CEO Stephen Baum repeatedly has said the company will not start construction of either LNG receiving terminal until it has supply contracts signed for a substantial portion of each facility’s throughput, which collectively will be 2 Bcf/d.

Baum has said that Sempra can either sell its receiving terminal processing capacity at a fixed rate to suppliers or buy the gas itself at an indexed price (Henry Hub, for example) with a discount to recover its operating costs, return on capital, and the cost of transporting it to the hub. The company may explore selling some supplies to its two major California-based utilities — San Diego Gas and Electric Co. and Southern California Gas Co. — although substantial consumer and regulatory resistance is expected there because of the sensitivity to so-called “affiliate transactions,” and California’s strict rules governing those transactions.

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