Sempra Energy and Proliance Energy acquire strategic natural gas storage development site

Sep 13, 2006

Media Contact:
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Sempra Energy

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Media Contact:
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ProLiance Energy

 

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        SAN DIEGO, Sept. 13, 2006 – Sempra Pipelines & Storage, a unit of Sempra Energy (NYSE: SRE), and ProLiance Transportation and Storage, LLC, the asset development and ownership affiliate of ProLiance Energy, LLC, today announced they have jointly acquired from Dominion (NYSE: D) three existing salt caverns representing 10 billion cubic feet (Bcf) to 12 Bcf of potential natural gas storage capacity and more than 150 acres of property in Cameron Parish, La. 

        Subject to finalization of development plans and regulatory approval, the property will be developed into a natural gas storage project.   Sempra Pipelines & Storage will own 75 percent of the new project and be responsible for development and operation of the facility.  ProLiance will own a 25-percent stake in the project.   Other terms of the deal were not disclosed.

        “This area in Louisiana is strategically located to capture natural gas storage opportunities as natural gas infrastructure continues to be added in the Gulf Coast region,” said George Liparidis, president of Sempra Pipelines & Storage. 

        Sempra Pipelines & Storage and ProLiance currently are finalizing construction on another natural gas storage facility in Calcasieu Parish, La., Liberty Gas Storage LLC.  Once developed, the newly acquired property and caverns would ultimately become an extension of Liberty Gas Storage and a significant number of new caverns could be added, Liparidis said.

        “This new acquisition gives us the potential to provide gas markets in the Gulf area with even more reliability and an added degree of supply-demand balancing,” said John Talley, president of ProLiance Energy.

        The newly acquired property and Liberty Gas Storage are located near numerous pipelines in the Gulf region including the Cameron and Port Arthur Pipelines, both under development by Sempra Pipelines & Storage, connecting area liquefied natural gas regasification terminals to the interstate gas transmission system.

        Located near the town of Sulphur, La., the existing Liberty Gas Storage project will provide firm storage and related services to customers transporting natural gas on interstate pipelines in the region.  The facility will provide 17 Bcf of working gas capacity for storage and is expected to be in service by the end of 2006.  The project also will include surface facilities to allow for a maximum injection of 500 million cubic feet per day and maximum withdrawals of 1 Bcf per day. 

        ProLiance Energy is a natural gas marketer headquartered in Indianapolis, Indiana.  ProLiance Energy is jointly owned by affiliates of Citizens Gas and Coke Utility and Vectren Corporation (NYSE: VVC).

        Sempra Pipelines & Storage, a subsidiary of Sempra Energy, acquires, builds and operates natural gas pipelines and storage facilities in Mexico and the United States.  Sempra Energy is a San Diego-based Fortune 500 energy services holding company with 2005 revenues of $11.7 billion.  The Sempra Energy companies’ 14,000 employees serve more than 29 million consumers in the United States, Europe, Canada, Mexico, South America and Asia.

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Sempra Pipelines & Storage is not the same company as the utilities, SDG&E or SoCalGas, and Sempra Pipelines & Storage is not regulated by the California Public Utilities Commission.