Sempra LNG signs agreement with RasGas to bring LNG from Qatar to new U.S. Gulf Coast terminal

Jun 8, 2009

Media Contact:
Art Larson

Financial Contact:
Glen Donovan

Sempra Energy

Sempra Energy

(877) 866-2066

(877) 736-7727

www.sempra.com

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        SAN DIEGO, June 8, 2009 – Sempra LNG, a subsidiary of Sempra Energy (NYSE: SRE), today announced it has signed an agreement with one of the world’s largest suppliers of liquefied natural gas (LNG), Ras Laffan Liquefied Natural Gas Company Limited 3 (RL 3), an affiliate of RasGas Company Limited (RasGas).  Cargoes are expected to commence from Aug. 1, 2009, through Dec. 31, 2010. 

        RasGas will have the ability to sell LNG to the U.S. market by delivering it to Sempra LNG at Sempra’s Cameron LNG receipt terminal near Lake Charles, La.  The flexible agreement is for the purchase of up to 50 cargoes with each cargo containing up to 4.8 billion cubic feet of natural gas.

        Construction is nearing completion at Cameron LNG and the new terminal is expected to go into commercial operation in July. 

        “Teaming up with RasGas to move its LNG through our new Cameron terminal into the U.S. gas market speaks to the value of our assets and the strength of our marketing capabilities,” said Darcel L. Hulse, president and chief executive officer of Sempra LNG.  “This short-term agreement allows us to utilize the remaining capacity at our new Louisiana terminal more fully, while expanding our gas marketing opportunities.”

        Cameron LNG is located near Henry Hub and the Gulf Coast along the Calcasieu Ship Channel, about 15 miles south of Lake Charles.  

        A second Sempra LNG receipt terminal, Energía Costa Azul, located in Baja California, Mexico, began commercial operation in 2008.  It is the only LNG receipt terminal operating on the west coast of North America.  The project’s capacity is fully subscribed.  

        LNG is simply natural gas in liquid form.  To reach a liquid state, natural gas must be cooled.  The liquid is then transported aboard specially designed carriers for delivery to receipt terminals.  These receipt terminals store LNG, return it to its gaseous state and dispatch it into pipelines for customer use.  In more than 50 years of shipping, LNG carriers have traveled more than 100 million miles without a major incident.

        Sempra LNG develops and operates LNG receipt terminals serving North American markets.  Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2008 revenues of nearly $11 billion.  The Sempra Energy companies’ 13,600 employees serve more than 29 million consumers worldwide.

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This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements can be identified by words like “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “may,” “would,” ”could,” “should,” or similar expressions, or discussions of strategies, plans or intentions.  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: local, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions by the California Public Utilities Commission, California State Legislature, California Department of Water Resources, Federal Energy Regulatory Commission, Federal Reserve Board,  and other regulatory and governmental bodies in the United States, the United Kingdom  and other countries; capital market conditions and inflation, interest and exchange rates; energy and trading markets, including the timing and extent of changes and volatility in commodity prices; the availability of electric power, natural gas and liquefied natural gas; weather conditions and conservation efforts; war and terrorist attacks; business, regulatory, environmental and legal decisions and requirements; the status of deregulation of retail natural gas and electricity delivery; the timing and success of business development efforts; the resolution of litigation; and other uncertainties, all of which are difficult to predict and many of which are beyond the control of the company.  These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the Securities and Exchange Commission.  These reports are available through the IDEA system without charge at the SEC’s Web site, www.sec.gov and on the company’s Web site, at www.sempra.com.

Sempra Pipelines & Storage, Sempra Generation, Sempra LNG and Sempra Commodities  are not the same companies as the utility, San Diego Gas & Electric (SDG&E) or Southern California Gas Company (SoCalGas), and Sempra Pipelines & Storage, Sempra Generation, Sempra LNG and Sempra Commodities are not regulated by the California Public Utilities Commission.


 


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