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Energy company proposes new LNG terminal in Texas

Energy company proposes new LNG terminal in Texas

   Sempra Energy, a San Diego-based energy services company, announced its intention to build a $600-million liquefied natural gas terminal near Port Arthur, Texas, to receive fuel imports. The facility will be capable of processing 1.5 billion cubic feet of natural gas per day.

   The terminal would be constructed on a 3,000-acre parcel owned by Sempra along the Port Arthur ship channel. Sempra said it expects to begin construction in 2006, and begin pumping gas to U.S. customers in 2009.

   The project would feature three large storage tanks and two unloading berths, and would be capable of doubling its capacity to 3 billion cubic feet of natural gas per day in the future.

   The facility is the third LNG terminal that the company has sought permission to build from the Federal Energy Regulatory Commission. Later this year the company plans to begin construction on two other receiving terminals — in Cameron, La., and in Ensenada, Mexico in the Baja California region — that are slated to begin operations in late 2007, the company said.

   The Mexican facility is a joint venture with Shell that will process 1 billion cubic feet of natural gas per day. The company said it was actively seeking gas suppliers for the Port Arthur terminal.

   Several new liquefied natural gas import facilities are under consideration as domestic production of natural gas dwindles and demand for the clean heating fuel rises.