SAN DIEGO, Aug. 28, 2008 – Mexico President Felipe Calderón, Donald E. Felsinger, chairman and chief executive of Sempra Energy, and other dignitaries were on-hand today to officially dedicate Sempra Energy’s (NYSE: SRE) Energía Costa Azul liquefied natural gas (LNG) receipt terminal in Baja California, Mexico, the first LNG receipt facility on the West Coast of North America.

        In operation since May 2008, the $975 million LNG receipt terminal is capable of processing up to 1 billion cubic feet per day of natural gas.  At the peak of construction, the project employed more than 3,000 workers.

        “Over the past decade Sempra Energy has invested about $2 billion in Mexico’s natural gas infrastructure and has worked with elected leaders, regulators and the citizens of Mexico in building new energy infrastructure for the Baja California region,” Felsinger said.  “We welcome President Calderón to today’s historic dedication of Energía Costa Azul  and look forward to continued cooperation with Mexico on future energy projects that address the region’s needs.“

        Energía Costa Azul’s first cargoes of imported natural gas arrived in April and May 2008. 
 
        The LNG receipt terminal is fully contracted.  Half of the storage and send-out service has been procured by Shell International Gas Limited under a 20-year agreement.  The remaining half of the capacity at Energía Costa Azul will be supplied from a new liquefaction facility BP and its Tangguh LNG Partners are completing in Indonesia.  Shipments from BP should begin arriving in the second quarter of 2009.

        The natural gas processed at Energía Costa Azul will be used in Baja California and the U.S. Southwest.  Natural gas from the terminal will meet applicable Mexico and U.S. gas pipeline quality standards. 

        LNG is simply natural gas in liquid form.  To reach a liquid state, natural gas must be cooled.  The liquid gas 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 LNG’s 45-year shipping history, LNG carriers have traveled more than 100 million miles without a major incident.
 
        In addition to the new Energía Costa Azul LNG receipt terminal, Sempra Energy projects in Baja California, Mexico, include:  Termoeléctrica de Mexicali, a clean, efficient 625-megawatt natural gas fired power plant in Mexicali; natural gas distribution companies in Mexicali, Chihuahua and La Laguna-Durango that serve about 100,000 customers; and natural gas transmission pipelines.
 
        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 2007 revenues of more than $11 billion.  The Sempra Energy companies’ 13,500 employees serve more than 29 million consumers worldwide.

Sempra LNG is not the same company as the utility, San Diego Gas & Electric (SDG&E) or Southern California Gas Company (SoCalGas), and is 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 Litigation Reform Act of 1995.  When the company uses words like “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “may,” “would,” ”could,” “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: 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, U.K. Financial Services Authority and other regulatory bodies in the United States and other countries; capital market conditions, inflation rates, interest rates and exchange rates; energy and trading markets, including the timing and extent of changes 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 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, and on the company’s Web site, www.sempra.com.

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