Federal regulators approve Sempra Energy Port Arthur LNG project

Jun 15, 2006

Media Contact:
Art Larson

Financial Contact:
Karen Sedgwick

Sempra Energy

Sempra Energy

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        SAN DIEGO, June 15, 2006 – Officials of Sempra LNG, a unit of Sempra Energy (NYSE:  SRE), welcomed today’s decision by the Federal Energy Regulatory Commission (FERC) authorizing the company to move forward with the development of a new liquefied natural gas (LNG) receiving terminal near Port Arthur, Texas, capable of processing up to 3 billion cubic feet per day (Bcfd) of natural gas.

        “More than half of the nation’s gas supplies are either consumed in or flow through the Gulf Coast region to serve the Midwest and East Coast markets,” said Darcel L. Hulse, president of Sempra LNG.  “Port Arthur LNG is in a premier location within the Gulf Coast region that provides access to important pipelines and natural gas storage facilities.”

        Sempra Energy began the federal permitting process for Port Arthur LNG in April 2004.

        “This permit gives Port Arthur LNG the flexibility, depending on the response from the marketplace, to determine the size and scope of the project’s first and second phases,” Hulse said. “The timing of construction would be dependent upon market needs.  The facility would be built on a portion of the 2,900 acres of land, owned by Sempra Energy since 1989, along the Port Arthur Ship Canal.  Port Arthur LNG could be fully operational as early as 2010 if the company successfully completes sufficient capacity and supply agreements.

        “We have been in discussions with many of the world’s LNG suppliers regarding capacity at our Port Arthur terminal.  The FERC approval we have just received allows those negotiations to proceed with certainty.”

        Construction began last year and continues at two Sempra LNG receipt terminals, Energía Costa Azul in Baja California, Mexico, and Cameron LNG near Lake Charles, La.  When both terminals are completed in 2008, they will have a combined sendout capacity of 2.5 Bcfd of natural gas.

        Sempra LNG oversees LNG project development.  Sempra Energy, based in San Diego, is a 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 LNG is not the same company as the utilities, SDG&E or SoCalGas, and Sempra LNG is not regulated by the California Public Utilities Commission.