Sempra LNG, a unit of Sempra Energy, has been awarded a 15-year natural gas supply contract by Mexico’s state-owned electric utility, Comision Federal de Electricidad (CFE), worth around $1.4 billion. Beginning in 2008 through to 2022, CFE will be supplied with an average of about 130 MMcf/d. Sempra’s Energia Costa Azul LNG terminal, under development about 20 km north of Ensenada, Baja California, will be used to supply the LNG when it is completed in 2008. Under the CFE contract the gas cost will be based on the natural gas index prices at the Southern California border.

Sempra LNG recently announced the award of the $500 million EPC contracts for the Energia Costa Azul facility to Techint, Black & Veatch, Mitsubishi Heavy Industries, and Vinci Construction Grands Projects of France. A joint venture involving the Costain Group and China Harbour won the construction contract for the project’s $170 million breakwater.