EduBourseActualitésSempra Energy LNG and Shell International Gas Limited announce new capacity agreement...

Sempra Energy LNG and Shell International Gas Limited announce new capacity agreement for Mexican LNG

SAN DIEGO and MEXICO CITY, Oct. 14, 2004 – Shell International Gas Limited (Shell) and Sempra Energy LNG, a subsidiary of Sempra Energy (NYSE:SRE), today announced a 20-year agreement that provides Shell with half the initial capacity of the Energía Costa Azul liquefied natural gas (LNG) regasification terminal in Baja California, Mexico. The agreement also gives Shell rights to half of any capacity additions as the project expands in the future.

Under the agreement, Sempra Energy LNG will own, construct and operate the terminal, which initially will have processing capacity of 1 billion cubic feet (Bcf) per day (7.5 million tonnes per year) of natural gas.

When it becomes fully operational in 2008, the Energía Costa Azul regasification terminal, located approximately 14 miles north of Ensenada, Mexico, will be the first LNG project on North America’s West Coast. It will help Baja California, Mexico, meet its long-term energy needs, providing, at the same time, an outlet to the U.S. market for excess capacity.

On Oct. 12, Sempra Energy LNG announced a supply agreement with BP and its Tangguh LNG partners for the supply of 3.7 million tonnes of LNG per year, (500 million Bcf/day) from Indonesia to Energía Costa Azul.

“We have worked cooperatively with Shell to develop this project over the past several months and Shell’s technical expertise in the LNG business has contributed significantly to the design of the project,” said Donald E. Felsinger, president and chief operating officer, Sempra Energy. “We jointly determined that the consolidation of the ownership, construction and operation of the project and Shell’s capacity agreement represented a mutually beneficial commercial arrangement for both companies. With Sempra Energy’s continued role as owner of the Energía Costa Azul project, we will maintain our ongoing involvement with the local community and Mexican authorities. We are committed to developing the project in accordance with Mexican and international safety standards, which meet or exceed U.S. requirements.”

“This agreement forges another vital link in North America’s new West Coast LNG supply chain,” Felsinger added. “This supply chain, requiring the investment of billions of dollars in natural gas infrastructure that includes LNG liquefaction and regasification plants, ships and pipelines, ensures the delivery of significant new gas supplies to the region.”

Shell Gas & Power Director, Americas and Africa, Catherine Tanna, said: “Shell is pleased with the joint progress made with Sempra Energy in the technical design and pre-construction efforts we have shared over the past months. We are confident that Sempra Energy will deliver the terminal to specifications and to contract. Shell is committed to the Mexican market, and looks forward to selling LNG into Mexico and, where appropriate, exporting gas to the United States.”

Tanna said the LNG supply for the Shell capacity will come from the Sakhalin II project in eastern Russia, where Shell is the largest shareholder. “This is a landmark deal in many ways that is testament to the truly global nature of the LNG industry. For the first time LNG from Russia will supply Mexico and California. This is good news for Mexico’s energy supply and a significant step in bringing LNG into the North American West Coast,” Tanna said.

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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 Legislation Reform Act of 1995. When the company uses words like “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “may,” “would,” “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: national, international, regional and local economic, competitive, political, legislative and regulatory conditions and developments; actions by the California Public Utilities Commission, the California State Legislature, the California Department of Water Resources and the Federal Energy Regulatory Commission; capital market conditions, inflation rates and interest rates; energy and trading markets, including the timing and extent of changes in commodity prices; weather conditions; business, regulatory and legal decisions; the pace of deregulation of retail natural gas and electricity delivery; the timing and success of business development efforts; and other uncertainties, all of which are difficult to predict and many of which are beyond the company’s control. 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.

Pierre Perrin-Monlouis
Pierre Perrin-Monlouis
Fondateur de Rente et Patrimoine (cabinet de gestion de patrimoine), Pierre Perrin-Monlouis est un analyste et trader pour compte propre. Il vous fait profiter de son expérience en trading grâce à ses analyses financières et décrypte pour vous les actualités des marchés. Son approche globale des marchés combine à la fois l'analyse technique et l'analyse fondamentale sur l'ensemble des marchés : crypto, forex, actions et matières premières.
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