The Mexican Environment and Natural Resources Agency signed off on ChevronTexaco?s environmental impact assessment for its offshore liquefied natural gas terminal slated for the neighborhood of the Coronado Islands. The project would process up to 1.4 billion cubic feet of natural gas per day and would sit about eight miles off the coast of Baja California, in a location said to be sheltered from storms. ?This authorization represents a major step in gaining approval for the project to be able to provide clean natural gas to meet the growing demand for energy in the region,? ChevronTexaco stated. There are several LNG projects slated for the region near the California-Mexico border. The main competitor in the Baja area is Sempra\/Shell, and their joint venture is the furthest along in the permitting process. However, the proposed terminals face strong local opposition because of environmental and safety concerns. ?As for Chevron and Sempra, we are concerned not about permits but about the potential for populist and political opposition to either project,? said George Baker, publisher of Mexico Energy Intelligence. ?It?s hard to see how either project will be ready to enter a bid by the end of November when the [Mexican Federal Energy Commission] is asking for proposals,? he said. Should the project fail to receive either permits or political support from local, state, and federal authorities, the cancellation clauses will go into effect.