Energía Costa Azul is a $975 million LNG receipt terminal, located about 15 miles north of Ensenada. LNG ships will be able to dock off the coast and unload LNG supplies, which is stored in onshore tanks. The gas processed by this terminal is used by electricity generating plants and diverse industries in the region via a new 45-mile gas pipeline which is interconnected with gas pipelines already existing in the area. The terminal is capable of processing 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.

Energía Costa Azul not only supplies additional natural gas to northern Mexico, it also provides 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.