Lawsuit threatens LNG Terminal in Mexico

A dispute over property ownership may block the construction of a liquefied natural gas receiving terminal in Baja California, Mexico:

A lawsuit filed in Baja California state court claims Sempra Energy LNG does not own the property on which it plans to build a liquefied natural gas receiving terminal.

Ensenada lawyer Carlos Gonzalez Castro filed the action on behalf of a Mexico City businessman who says he owns the land. Gonzalez says the property Sempra owns is really about three miles south of the parcel where the company is preparing to build its $670 million LNG complex. "All the studies and research and environmental analyses have been made on the wrong lots," Gonzalez said. "All the (government) authorizations are for the wrong point. The permits are not valid."

The suit was filed in Baja California state court in mid-November. A judge has ordered a legal notice to be included in Ensenada land records noting that the parcel's ownership is in dispute.

While that's a blow to Sempra, it may benefit California consumers if other LNG terminals--owned by other companies--are allowed to proceed, thereby introducing more competition in the local natural gas markets.