Tsunami Spares LNG Site; Sempra Terminal on Schedule

By Published On: January 8, 2005

The tsunami that swept southern Asia on December 26 left Sempra Energy?s timetable to construct a major liquefied natural gas (LNG) terminal in Baja California unaffected?despite its plans to be supplied by Indonesian gas. ?The republic?s energy production facilities in Aceh and Northern Sumatra seem to have survived intact,? said Daniel Lian, executive director for Morgan Stanley?s Singapore office. Sempra?s proposed LNG facility, Energ?a Costa Azul, is supposed to get 500 million cubic feet of natural gas a day from Indonesia, according to a 20-year deal announced in October 2004. That amount is about half of what Sempra estimates will be processed by the terminal. The gas will be shipped from Indonesia?s Tangguh LNG liquefaction facility; it is expected to go on line in 2008. BP is the majority owner of the Tangguh plant. Other owners include Mitsubishi (of which a subsidiary, Sound Energy Solutions, is attempting to build an LNG plant in Long Beach), Nippon Oil, and LNG Japan. Indonesia?s Tangguh gas field was sheltered from the massive tidal wave that devastated large stretches of low-lying shoreline along the Indian Ocean. The gas field on the island of West Papua lies well east of the massive islands that make up Indonesia and Malaysia. While the tsunami killed more than 100,000 people on the islands and left up to one million residents homeless and without work, energy production was hardly affected.

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