Mexican Appellate Court Revokes Order to Suspend Sempra LNG Terminal Permits

Sempra LNG, a subsidiary of Sempra Energy, reported that a Mexican federal appeals court has revoked a June 17 district court order that had directed Mexican regulatory agencies to suspend authorizations for the operations of Sempra LNG’s liquefied natural gas (LNG) terminal near Ensenada, Mexico.

Although the full ruling is not yet available, the result of the appellate hearing has been posted to the appeals court website.

Additionally, the district court has acknowledged receipt of notice from the appeals court that the June 17 suspension order has been voided.

The June 17 order had been issued without a hearing at the request of Ramon Eugenio Sanchez Ritchie in connection with his claims of ownership of land adjacent to the LNG terminal.

Sempra LNG officials stated that the LNG terminal continues to operate in compliance with all permits and the land adjacent to the terminal that is claimed by Sanchez Ritchie is not required for the terminal’s operations.

They noted that the permit for the project issued in April 2003 by SEMARNAT, the Mexican environmental protection agency, included a requirement for Sempra LNG to acquire unspecified additional property adjacent to the terminal as a “buffer zone.”

However, the layout of the terminal subsequently was modified in a manner demonstrated by independent studies to eliminate the need for any additional property, including the property in dispute.

Accordingly, in June 2005, SEMARNAT eliminated the requirement for additional land.

A hearing by the district court judge on the terminal’s operating permits is now scheduled for July 6.

Sempra LNG will continue to vigorously defend its investment and protect its right to operate this important facility for the energy security of Mexico, company officials said.

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Source: Sempra Energy, June 29, 2010;