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SoCal Gas sees Aliso Canyon injections starting in September

Southern California Gas could start injecting healthy gas into a Aliso
Canyon storage trickery in September, CEO Dennis Arriola pronounced Thursday during
an gain discussion call with analysts.

All of Alison Canyon’s 114 wells have privileged a initial proviso of
inspection and 17 wells have privileged a final turn of testing, Arriola said.

SoCal Gas, a Sempra Energy auxiliary that operates Aliso Canyon, may
later this month ask a California Conservation Department’s Division of Oil,
Gas and Geothermal Resources for accede to start injections during a cleared
wells, he said.

DOGGR and a California Public Utilities Commission will have to find
that a Aliso Canyon margin is protected before a injections can go ahead.

Potentially, SoCalGas could start regulating adult to 25 wells subsequent month,
Arriola estimated.

Some 17 appetite plants in a Los Angeles dish totaling 9,838 MW of
capacity are influenced by a Aliso Canyon shutdown.

Aliso Canyon still has 15 Bcf following a trickle that can be used to meet
reliability needs.

Earlier this year, a California Independent System Operator and others
estimated a facility’s effective shutdown exposes Southern California to up
to 14 days of appetite outages this summer. So far, there have not been any power

Sempra on Thursday increasing a cost estimates for a four-month Aliso
Canyon trickle to about $717 million, adult from $665 million 3 months ago, with
about 70% of a cost compared to relocating residents who lived nearby the
facility. About 180 lawsuits have been filed compared to a Aliso Canyon leak.

The costs also embody mitigating a 4.62 Bcf that leaked from Aliso
Canyon, mostly by shortening methane emissions during dairy farms in southern


Meanwhile, Sempra continues to see opportunities in Mexico, that is
seeking vital investments in a appetite infrastructure to support a growing
manufacturing base, according to Debra Reed, Sempra authority and CEO.

Sempra auxiliary IEnova, a largest private appetite association in Mexico,
in Jul concluded to compensate Pemex $1.1 billion for a Mexican state-owned oil
company’s 50% interest in several tube assets.

IEnova already owned a other half of a resources and Reed expects the
deal to tighten by a finish of a third quarter. The resources embody 3 gas
pipelines, an ethane pipeline, and a LPG tube and compared storage

In June, a corner try between IEnova and TransCanada won a $2.1
billion understanding to build and possess a roughly 500-mile gas tube from near
Brownsville, Texas, to Tuxpan in Veracruz.

IEnova will spend about $840 million on a project, according to Reed.
The plan has a 25-year travel agreement with a Comision Federal de
Electricidad. Sempra expects a tube to operational in late 2018.

IEnova is also scheming to bid into a ask for proposals for
renewable appetite set to be hold in September, according to Reed.

Also, Sempra skeleton to sell a 625-MW Termoelectrica de Mexicali
gas-fired appetite plant, that sells appetite into California, by a finish of the
year, a association pronounced in a quarterly news filed with a US Securities and
Exchange Commission Thursday.


Sempra is also deliberation building gas storage comforts and related
pipelines to support a flourishing LNG zone and production along a Gulf
of Mexico coast, according to Reed.

“As LNG comforts come online a need for storage will become
apparent,” Reed said.

In a past year, there has been some ceiling transformation in a cost of
storage, according to Reed, who pronounced she expects storage prices to boost as
more bucket comes online.

The Cameron LNG trade facility, that Sempra is building in Louisiana as
part of a corner venture, is about median finished and approaching to be
operational in 2018, according to a company. The trickery is designed to
export 1.7 Bcf/d.

–Ethan Howland, newsdesk@platts.com

–Edited by Keiron Greenhalgh, keiron.greenhalgh@spglobal.com


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