Diego

California regulators on Thursday unanimously approved a 2007-08 natural gas hedging program for Sempra Energy’s San Diego Gas and Electric Co. (SDG&E) unit and a revised allocation of firm core capacity on parts of Pacific Gas and Electric Co.’s (PG&E) backbone transmission pipeline system.

California regulators Thursday unanimously approved a 2007-08 natural gas hedging program for Sempra Energy’s San Diego Gas and Electric Co. (SDG&E) unit and a revised allocation of firm core capacity on parts of Pacific Gas and Electric Co.’s (PG&E) backbone transmission pipeline system.

San Diego-based Sempra Energy Monday announced it will partner its successful energy-metals trading business with Royal Bank of Scotland (RBS) in a complex deal in which each company will put in $1.30-1.35 billion. The joint venture will be called RBS Sempra Commodities LLP and expects to double its profits over the next five years with the UK-based bank taking over a majority interest and the day-to-day trading operations.

Underscoring its $2 billion bet so far, with more to come, in Mexican energy projects, San Diego-based Sempra Energy announced Tuesday it has named a Mexican investment banker, Carlos Ruiz Sacristan, to its board of directors as an 11th member. Ruiz, 57, once headed Mexico’s national oil company Pemex as general director (1988-94) and has served in several federal government posts, including budget undersecretary. A partner in Proyectos Estrategicos Integrales, a Mexican investment banking firm, Ruiz also serves on the board of Southern Copper Corp., a copper producer in Mexico and Peru. (Sempra’s global trading business, which concentrates on energy, also includes trading in various metals.) “With his extensive experience in Mexico’s energy and finance sectors, Carolos Ruiz Sacristan will be an excellent addition to our board,” said Donald Felsinger, Sempra CEO, noting that the company collectively has nearly $2 billion invested in a liquefied natural gas (LNG) receiving terminal that will open next year along the North Baja California Pacific Coast, natural gas pipelines and a power generation plant, all in North Baja California. It also has gas distribution systems in other states in Mexico. Prior to joining his current investment bank in 2001, Ruiz spent nearly six years serving as Mexico’s secretary of communications and transportation. In that post, he oversaw the reshaping the nation’s communications and transportation sectors to increase investment, broaden competition and improve infrastructure, Felsinger said. From 1974 until 1988 when he took over Pemex, Ruiz held positions of increasing responsibility at Banco de Mexico, and during that time some of his experience included serving on boards of several financial institutions and other public companies and commissions.

San Diego-based Sempra Energy’s vast liquefied natural gas (LNG) stake in North America looks like a pot of gold with more than 2 Bcf/d of LNG capacity sold to LNG suppliers at two of its three permitted terminals that are under construction and set to begin commercial operations next year.

San Diego-based Sempra Energy’s vast liquefied natural gas (LNG) stake in North America looks like a pot of gold with more than 2 Bcf/d of LNG capacity sold to LNG suppliers at two of its three permitted terminals that are under construction and set to begin commercial operations next year.

Due to increased profitability at its commodities business, San Diego-based Sempra Energy said Wednesday it expects full-year 2006 earnings from continuing operations, excluding impacts related to asset sales, to exceed $4 per share, a significant increase over the company’s previous estimate of $3.50 to $3.70. The company noted that final year-end and fourth quarter results will be announced on Feb. 22.

San Diego-based Sempra Energy sees energy trading as an “integral part” of its overall business, providing a useful window on market imbalances that can lead to capital investment opportunities, according to CFO Mark Snell, who spoke Thursday at the Merrill Lynch Global Power and Gas Leaders Conference in New York City.

San Diego-based Sempra Energy’s pipeline unit and a subsidiary of Indiana-based ProLiance Energy jointly announced last week that they purchased three salt caverns in Cameron Parish, LA, representing the potential for 10-12 Bcf of natural gas storage capacity, from Richmond, VA-based Dominion. The purchase includes 150 acres of adjacent property carrying the potential for more storage capacity.