Sempra makes monopoly play on LNG Supplies

In a shockingly frank conversation with Petroleum News, Sempra's Washington, D.C.-based vice president of federal affairs, David Freer admits that the company wants to establish monopoly power on Natural Gas imports along the Pacific Coast:

The company is in “serious negotiations with a number of foreign governments and international oil and gas companies” to supply LNG to the Costa Azul facility, and expects to conclude those negotiations and have a contract signed within 30 to 60 days.

Freer said Sempra expects that contract to tie up LNG capacity on the West Coast. Costa Azul will be permitted at 1 billion cubic feet a day and will have the capacity to expand to 2 bcf. “When that occurs, the market will be essentially closed on the West Coast to additional LNG supply from any other source.”

Of course, since Sempra also owns the distribution company and a major electrical generator, having monopolistic powers over the supplies of Natural Gas imports would only strengthen their ability to manipulate energy markets in California.