Sempra's Baja LNG Plans may get Frozen

Sempra may have thought that going to Mexico to build its Liquefied Natural Gas receiving terminal would spare it the time-consuming regulatory processes of California. What it lost, along the way, was the certainty of the process:

As Sempra Energy broke ground on its $800 million liquefied natural gas receiving terminal in Baja California this week, the state's legislature launched an official inquiry into the project.

The investigation, which began yesterday, is led by Guillermo Aldrete Hass, the leader of the legislature's foreign affairs committee. He said he will ask federal officials to suspend the permits for the project while the investigation continues and legal challenges remain unresolved.

"There hasn't been transparency from the beginning to the end," Aldrete said. "We want to know the economic and environmental impacts – both negative and positive."

Of particular concern, Aldrete said, are investigative findings and legal cases in California alleging that Sempra Energy manipulated the natural gas market during the state's 2000-2001 power crisis, causing higher prices for consumers.

"We can't trust Sempra Energy if they have these problems in California," Aldrete said.

Federal and legal challenges also have been filed in Mexico to forestall the LNG project, which is about 14 miles north of Ensenada on the Costa Azul plateau adjacent to the Bajamar golf resort.