Shell International Gas Limited and Sempra Energy LNG Corp are now constructing this terminal on the Baja California coast. It is the only LNG facility under construction on the West Coast.  The two companies will own and operate the $600 million facility.  The location for the terminal is on the Costa Azul in Mexico, 23 km Northwest of the city of Ensenada.  

The Baja California site was chosen after evaluation of potential coastal sites near the U.S. border.  The final decision was made based on zoning, proximity to population centers, and proximity to deep water. The Shell/Sempra LNG terminal will be located within 2 miles of one of the most of the popular tourist resorts, Bajamar.  The associated pipeline will pass through an inland route that avoids residences, but has a more negative environmental impact as compared to other proposed routes.    

The Baja California LNG terminal will occupy 40 acres of coastal land, with 24 additional acres being used for the service road.  It will take three and a half years to construct, requiring approximately 1,000 construction workers.

Construction of the pipeline will disrupt nearby communities and will take one year to complete.  After construction, 30-40 technical workers will be required to operate the facility.  It is likely that already trained individuals will fill all of the higher-paid, skilled positions. Members of the local community are not likely to fill these higher-paying jobs.  In addition, 35 contract workers will be hired for services such as security, catering, cleaning, and maintenance.

The terminal will unnecessarily harm the coastal environment.  Shell and Sempra plan to use at least 100 million gallons per day of seawater to regasify the LNG at the terminal.  This process is expected to kill 100 percent of any sea life entrained in the seawater used for regasification.

There is concern that construction will destroy archeological remains dating back thousands of years.

Energia Costa Azul - At a glance

Location: 14 miles north of Ensenada, on the Costa Azul plateau.
Owner: Sempra Energy LNG Corporation
Peak Natural Gas production Capacity: 1,300 million cubic feet per day.
Tentative LNG sources: Indonesia (Tangguh) and Russia (Sakhalin II).
Storage Capacity: 320,000 cubic meters (two tanks)
Delivery of gas to market: A 42-mile, 36-inch to 42-inch diameter pipeline connecting to the Bajanorte Pipeline.
Located within the 3 mile “burn zone”: A once-pristine coastline and surfing destination, as well as Bajamar, a coastal resort and golf course.

Learn More: Border Power Plant Working Group