Boston, MA 04/28/2014 (wallstreetpr) – The ongoing turbulent Russia crisis is serving an opportunity for the U.S. energy companies, including Sempra Energy (NYSE:SRE). The recent Ukraine crisis is forcing Europe to reduce its dependence on natural gas imports from Russia and so, the Unites States liquified natural gas exports are seen as a the potential gap filler.
Faster Export Approvals
While the U.S. companies are improving on their production capabilities, there are still issues such as expensive infrastructure and lengthy government approval procedures for them to clear the export route. However, the U.S. Energy Secretary Ernest Moniz said on Friday that the geopolitics surrounding the Ukraine issue have led to faster approvals for LNG export from the U.S. and the scenario will continue to remain the same for the coming days. This points out that though not immediately, but rather from a long-term perspective, Russia’s crisis is strengthening the playing field for the U.S. natural gas exporters. The primary example of which comes from the Energy Department’s latest approval of LNG exports from a plant located in Oregon. Moreover, Moniz hinted that the energy companies in the U.S. can expect speedy approvals of exports amid the growing Ukraine crisis.
Sale Of Mexican Stake
During the last week, Sempra’s Mexican unit Infrastructure Energetica Nova SAB (IENOVA) entered in an agreement, under which it agreed to sell half of its wind project located in the Latin America to InterGen NV. The sale is subject to regulatory approval in both Mexico and U.S and marks the first cross-border wind generation project between the two countries. While the Phase 1 of the wind project is expected to deliver in the first half of 2015, Sempra’s subsidiary, San Diego Gas & Electric Co. will buy the electricity generated from the project as per the 20-year power purchase agreement.
Apart from this, Sempra Energy (NYSE:SRE) is slated to release its first-quarter earnings on May 2, 2014.
