New Sempra Unit to Lay Fiber-Optic Lines in Pipes

Sempra Energy launched a new business that will thread fiber-optic lines through existing natural-gas lines to help phone companies bring high-speed data connections to business customers nationwide.

San Diego-based Sempra, the nation’s largest natural-gas retailer, said it will use a new technology developed by its communications unit to install the fiber in existing gas pipes without having to disrupt service.

The new unit, called Sempra Fiber Links, will pack fiber-optic strands into natural-gas-style pipes that will then reside inside working gas lines.

The business will have plenty of pipe to work with because Sempra Energy owns two natural-gas utilities, San Diego Gas & Electric Co. and Southern California Gas Co. In addition, Sempra plans to forge partnerships with other gas companies.

Michael Allman, president of the new unit’s parent, Sempra Communications, said he believes that phone companies will embrace the new technology because it remains expensive and time-consuming to trench through streets and sidewalks to install fiber in major cities. The first live test of the system will take place in August in a small North Carolina city.

Sempra shares fell 89 cents to close at $26.47 on the New York Stock Exchange.