Sempra Installs Cable in Gas Line

Sempra Energy, owner of the biggest U.S. natural-gas utility, began installing fiber-optic cable in a gas pipeline in North Carolina, the first time it has run its “fiber-in-gas” line to offer fast Internet service.

The mile-long installation was in a line owned by its Frontier Energy unit, a gas utility based in North Wilkesboro, N.C., Sempra spokeswoman Jennifer Andrews said.

The proprietary process lets workers tap into a gas line using a seal to keep gas from escaping. A plastic tube is sent through the gas line and is pulled out at another point on the line. The fiber-optic lines are then installed in the tube.

The “pipe within a pipe” represents a “several hundred million dollar revenue opportunity,” Sempra Communications President Michael Allman said in July. The installation is fast and costs less than traditional laying of fiber, which usually involves digging up streets, the company said.

Sempra recently began selling the process to gas utilities in North America. The company didn’t say how much the North Carolina line cost, though it was 30% to 50% less than traditional fiber installation costs of $250,000 to $1 million a mile in a city, Andrews said. The company plans to provide more details after setting up other lines, she said.

San Diego-based Sempra owns Southern California Gas, which has about 45,000 miles of transmission and distribution pipelines. Sempra also owns San Diego Gas & Electric and trades energy.

Shares of Sempra fell 59 cents to close at $25.13 Thursday on the New York Stock Exchange. They have risen 8.1% this year.