CRE Issues Sempra Natgas Transportation Permit

Mexico's Energy Regulatory Commission (CRE) yesterday issued a natural gas transportation permit to US-based energy company Sempra Energy's international subsidiary for the construction of the 135-mile Mexican segment of the North Baja Pipeline Project, Sempra said in a statement. Sempra Energy International, Proxima Gas S. A. de C.V. and PG&E Corporation are developing the $230 million, 215-mile Arizona-to-Mexico pipeline. Project construction should begin as soon as the US Federal Energy Regulatory Commission issues its permit for the US segment, Sempra Energy International president Darcel L. Hulse said. PG&E Corporation's National Energy Group (NEG) in October filed an application with the FERC to build the 80-mile U.S. portion of the pipeline. The companies have already signed agreements for over half of the pipeline's 500,000-decatherm capacity and discussions are ongoing with other potential customers. The project will begin at an interconnection with El Paso Natural Gas Co. near Ehrenberg, Arizona and traverse southeastern California and Mexico's Northern Baja California state and finish at an interconnection with an existing pipeline system. PG&E National Energy Group will direct the permitting and development of the US leg, while Sempra Energy International will direct the permitting and development in Mexico. The initial design calls for a 36-inch pipeline for the first 12 miles and a 30-inch pipeline for the route's duration, and one compressor station in Arizona. The companies are working with local communities to refine the route and design. Proxima Gas S.A. de C.V. is a private Mexican company that develops and invests in infrastructure projects in Mexico. Sempra Energy International develops, operates and owns energy projects that provide natural gas and electricity services to more than 2.5 million customers in Argentina, Canada, Chile, Mexico, Peru, the US and Uruguay. In Mexico, Sempra Energy International and its partner, Proxima Gas, own and operate three natural gas distribution systems and one gas transmission pipeline, with the goal of reaching 125,000 customers by 2005.