Why do we excel?

Sempra Energy excels in: permitting, community involvement and support, infrastructure, gas distribution and producing a healthy balance sheet - all areas that will contribute to the growth of Sempra LNG. Furthermore, Sempra Energy's companies work together to provide broad expertise and capabilities, an asset that strengthens Sempra LNG.

Permitting

Sempra Energy and its companies have a solid track record for effectively navigating the permitting process for energy facilities. Energía Costa Azul is the first LNG project in Baja California to receive all key approvals and it will be the first new West Coast LNG facility constructed in North America.

Energy infrastructure

Sempra Energy also excels at energy infrastructure. The three power plants built during 2003 represent an investment of more than $1 billion. They include: Mesquite Power near Phoenix, which has 1,250 megawatts (MW) of capacity; Elk Hills Power, a 550 MW facility near Bakerfield, Calif., jointly owned by Sempra Generation and Occidental Petroleum Corporation; and Termoelectrica de Mexicali, a 600 MW facility near Mexicali, Mexico.

Sempra Pipelines and Storage built the 145-mile Gasoducto Bajanorte natural gas transportation pipeline, which originates at the U.S.-Mexico border and crosses Baja California. It has a capacity of about 500 million cubic feet per day of natural gas and is fully subscribed for the next 20 years.

Sempra Energy's Southern California Gas Company is the nation's largest natural gas distribution utility. It serves a population of 19.8 million through 5.6 million natural gas meters. Southern California Gas Company operates and maintains 48,000 miles of gas transportation and distribution pipelines. Another Sempra Energy utility, San Diego Gas & Electric, serves 3.4 million consumers through 1.3 million electric meters and 825,000 natural gas meters.

We know how to build and maintain energy infrastructure.

Strong financials

Sempra Energy also has a strong balance sheet. 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' more than 14,000 employees serve more than 29 million consumers in the United States, Europe, Canada, Mexico, South America and Asia. Net income for 2005 was $920 million, and total assets were $29.2 billion.

Broad expertise and capabilities

Sempra Energy's companies work together to provide broad expertise and capabilities. Sempra Commodities (formerly known as Sempra Energy Trading) is the nation's third largest natural gas trader, as measured by wholesale physical volumes sold in 2004/2005. Sempra Commodites has worked with other Sempra Energy companies on gas commodity transactions and is currently working with Sempra LNG.