UPDATE 1-Sempra's Costa Azul LNG terminal to take cargo

NEW YORK, May 27 (Reuters) - Sempra Energy's Costa Azul liquefied natural gas terminal in Baja California, northern Mexico, is expected to receive a cargo of LNG on May 29 from the Tangguh project in Indonesia, according to AISLive ship tracker on Reuters.

The Tangguh Sago tanker, which can hold up to 155,000 cubic meters of LNG, was last seen nearing the terminal on Thursday, the data showed. It will be the third cargo to arrive at the terminal this month.

Costa Azul, which supplies gas via pipeline to Southern California, is set to receive regular deliveries of LNG from Tangguh this year as production there ramps up, Sempra LNG's chief executive told Reuters last month.

Deliveries from the BP-led Tangguh plant to Costa Azul have been slow in recent months due to operational problems at Tangguh and low gas prices in Southern California, which have deterred shippers from sending much gas there.

Costa Azul imports are part of a supply agreement under which terminal operator Sempra Energy will take up to 500 billion cubic feet of LNG from the Tangguh project for 20 years, with the option to divert some of these volumes to more attractive markets.

(Reporting by Edward McAllister; editing by Jim Marshall) Keywords: LNG IMPORT/COSTA AZUL ([e-mail]; [phone]; Reuters Messaging:[e-mail]) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.