Federal Regulators' Landmark Decision Authorizes New Sempra Energy Cameron LNG Project
Federal Regulators' Landmark Decision Authorizes New Sempra Energy Cameron LNG Project
Sep 10, 2003
Federal Regulators' Landmark Decision Authorizes New Sempra Energy Cameron LNG ProjectSAN DIEGO, Sept. 10, 2003 - Sempra Energy officials greeted today's landmark decision by the Federal Energy Regulatory Commission (FERC) authorizing the company to move forward with the construction and operation of the $700 million Cameron LNG liquefied natural gas (LNG) receiving terminal near Lake Charles, La., the first new LNG facility to be constructed in the United States in more than two decades.
Last month, the Cameron LNG facility received the final environmental impact statement (EIS) from the FERC. The project is on schedule to begin construction in the first quarter of 2004 with operations commencing in 2007.
Cameron LNG will have the capacity to process up to 1.5 billion cubic feet (Bcf) per day of natural gas. During peak construction the project will employ more than 800 workers. Upon completion it will have 50 to 60 full-time employees.
"Today's decision is a milestone for Sempra Energy and the entire LNG industry," said Donald E. Felsinger, group president of Sempra Energy Global Enterprises, the umbrella for Sempra Energy's growth businesses. "Sempra Energy stands alone as the first and only company to successfully acquire authorization from the federal regulatory commissions of the United States and Mexico for the construction of two new North American LNG facilities, Cameron LNG and Energia Costa Azul in Baja California, Mexico.
"These developments allow us to concentrate on completing agreements with overseas natural gas suppliers who wish to bring the popular fossil fuel to the shores of North America," Felsinger said.
Sempra Energy's Cameron LNG and Energia Costa Azul LNG terminals will serve two key North American energy gateways, the United States' Gulf Coast region and the west coast of Baja California, Mexico. Combined, the two projects will be able to process up to 2.5 Bcf of natural gas per day. Both projects will be designed and constructed to meet the industry's stringent safety standards.
"Cameron LNG is of critical importance to Louisiana and the United States," said Darcel Hulse, president, Sempra Energy LNG Corp. "The new jobs we are creating are important but represent a fraction of the jobs we will be saving by bringing new supplies to those industries dependent on natural gas."
LNG is natural gas that has been cooled below minus 260 degrees Fahrenheit and condensed into a liquid. LNG occupies 600 times less space than in its gaseous state, which allows it to be shipped in cryogenic tankers from remote locations to markets where it is needed. At the receiving terminal, LNG is unloaded and stored until it can be vaporized back into natural gas and moved via pipeline to customers.
Sempra Energy LNG Corp., a unit of Sempra Energy Global Enterprises, oversees LNG project development.
Sempra Energy (NYSE: SRE), based in San Diego, is a Fortune 500 energy services holding company with 2002 revenues of $6 billion. The Sempra Energy companies' 12,000 employees serve more than 9 million customers in the United States, Europe, Canada, Mexico, South America and Asia.
Sempra Energy Global Enterprises and Sempra Energy LNG Corp. are not the same companies as the utilities SDG&E/SoCalGas, and are not regulated by the California Public Utilities Commission.
This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Legislation Reform Act of 1995. When the company uses words like "believes," "expects," "anticipates," "intends," "plans," "estimates," "may," "would," "should" or similar expressions, or when the company discusses its strategy or plans, the company is making forward-looking statements. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Future results may differ materially from those expressed in the forward-looking statements. Forward-looking statements are necessarily based upon various assumptions involving judgments with respect to the future and other risks, including, among others: national, international, regional and local economic, competitive, political, legislative and regulatory conditions and developments; actions by the California Public Utilities Commission, the California State Legislature, the California Department of Water Resources and the Federal Energy Regulatory Commission; capital market conditions, inflation rates and interest rates; energy and trading markets, including the timing and extent of changes in commodity prices; weather conditions; business, regulatory and legal decisions; the pace of deregulation of retail natural gas and electricity delivery; the timing and success of business development efforts; and other uncertainties, all of which are difficult to predict and many of which are beyond the company's control. These risks and uncertainties are further discussed in the company's reports filed with the Securities and Exchange Commission that are available through the EDGAR system without charge at its Web site, www.sec.gov
Last month, the Cameron LNG facility received the final environmental impact statement (EIS) from the FERC. The project is on schedule to begin construction in the first quarter of 2004 with operations commencing in 2007.
Cameron LNG will have the capacity to process up to 1.5 billion cubic feet (Bcf) per day of natural gas. During peak construction the project will employ more than 800 workers. Upon completion it will have 50 to 60 full-time employees.
"Today's decision is a milestone for Sempra Energy and the entire LNG industry," said Donald E. Felsinger, group president of Sempra Energy Global Enterprises, the umbrella for Sempra Energy's growth businesses. "Sempra Energy stands alone as the first and only company to successfully acquire authorization from the federal regulatory commissions of the United States and Mexico for the construction of two new North American LNG facilities, Cameron LNG and Energia Costa Azul in Baja California, Mexico.
"These developments allow us to concentrate on completing agreements with overseas natural gas suppliers who wish to bring the popular fossil fuel to the shores of North America," Felsinger said.
Sempra Energy's Cameron LNG and Energia Costa Azul LNG terminals will serve two key North American energy gateways, the United States' Gulf Coast region and the west coast of Baja California, Mexico. Combined, the two projects will be able to process up to 2.5 Bcf of natural gas per day. Both projects will be designed and constructed to meet the industry's stringent safety standards.
"Cameron LNG is of critical importance to Louisiana and the United States," said Darcel Hulse, president, Sempra Energy LNG Corp. "The new jobs we are creating are important but represent a fraction of the jobs we will be saving by bringing new supplies to those industries dependent on natural gas."
LNG is natural gas that has been cooled below minus 260 degrees Fahrenheit and condensed into a liquid. LNG occupies 600 times less space than in its gaseous state, which allows it to be shipped in cryogenic tankers from remote locations to markets where it is needed. At the receiving terminal, LNG is unloaded and stored until it can be vaporized back into natural gas and moved via pipeline to customers.
Sempra Energy LNG Corp., a unit of Sempra Energy Global Enterprises, oversees LNG project development.
Sempra Energy (NYSE: SRE), based in San Diego, is a Fortune 500 energy services holding company with 2002 revenues of $6 billion. The Sempra Energy companies' 12,000 employees serve more than 9 million customers in the United States, Europe, Canada, Mexico, South America and Asia.
Sempra Energy Global Enterprises and Sempra Energy LNG Corp. are not the same companies as the utilities SDG&E/SoCalGas, and are not regulated by the California Public Utilities Commission.
This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Legislation Reform Act of 1995. When the company uses words like "believes," "expects," "anticipates," "intends," "plans," "estimates," "may," "would," "should" or similar expressions, or when the company discusses its strategy or plans, the company is making forward-looking statements. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Future results may differ materially from those expressed in the forward-looking statements. Forward-looking statements are necessarily based upon various assumptions involving judgments with respect to the future and other risks, including, among others: national, international, regional and local economic, competitive, political, legislative and regulatory conditions and developments; actions by the California Public Utilities Commission, the California State Legislature, the California Department of Water Resources and the Federal Energy Regulatory Commission; capital market conditions, inflation rates and interest rates; energy and trading markets, including the timing and extent of changes in commodity prices; weather conditions; business, regulatory and legal decisions; the pace of deregulation of retail natural gas and electricity delivery; the timing and success of business development efforts; and other uncertainties, all of which are difficult to predict and many of which are beyond the company's control. These risks and uncertainties are further discussed in the company's reports filed with the Securities and Exchange Commission that are available through the EDGAR system without charge at its Web site, www.sec.gov
