Sempra LNG Project Greenlighted in Mexico

Sempra will build an LNG terminal in Mexico to serve both California and Baja, leaving four other companies scrambling to get approval what will likely be just one more LNG terminal along the U.S. West Coast:

Sempra Energy said Friday that it had won a high-stakes race for approval to construct North America's first West Coast liquefied natural gas terminal.

San Diego-based Sempra, parent of Southern California Gas Co. and San Diego Gas & Electric Co., said it would begin building the project early next year at a seaside location north of Ensenada.

Half a dozen companies — including ChevronTexaco Corp., Mitsubishi Corp., BHP Billiton and Marathon Oil Corp. — are pushing proposals to bring LNG to energy-starved California and other Western states aboard special container ships docking at Pacific coast terminals. The goal is to tap into California's soaring demand for natural gas — and gain hefty profits from prices that have more than tripled since 2000.