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Energía Costa Azul is an $875 million project to build an
LNG receipt terminal along the coast, about 14 miles north
of Ensenada. LNG ships will be able to dock off the coast
and unload LNG supplies, which would be stored in onshore
tanks. The gas processed by this terminal will be used by
electricity generating plants and diverse industries in
the region via a new 45-mile gas pipeline which will be
interconnected with gas pipelines already existing in the
area. The project will have an initial capacity to process
1 billion cubic feet per day of natural gas, with
room for expansion as market demands dictate.
Baja California, Mexico has a growing
need for energy, yet currently obtains all
its natural gas supplies from the United
States. The United States, meanwhile, is
facing higher energy demands and dwindling
supplies, which is placing an upward
pressure on prices.
The project will not only supply additional
natural gas to northern Mexico, it
will also provide a new supply alternative
to California and the West, where an
increasing imbalance between supply
and demand has led to rapidly escalating
natural gas prices and electric rates
beginning in 2002.
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