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          <NonNumbericText>&lt;div style="font-size:12pt"&gt;&lt;p&gt;Inventories &lt;br /&gt;The Sempra Utilities value natural gas inventory by the last-in first-out (LIFO) method. As inventories are sold, differences between the LIFO valuation and the estimated replacement cost are reflected in customer rates. Materials and supplies at the Sempra Utilities are generally valued at the lower of average cost or market.&lt;br /&gt;At December 31, 2009 and 2008, Sempra Pipelines &amp;amp; Storage had $5 million and $39 million, respectively, of natural gas inventory recorded at lower of average cost or market, and Sempra LNG had $19 million and $17 million, respectively, of LNG inventory (categorized as natural gas below) valued by the first-in first-out method.&lt;/p&gt;&lt;table style="border-collapse: collapse; margin-top: 20px;"&gt;&lt;tr&gt;&lt;td width="547" align="left" colspan="13" style="border-top: 1px solid #000000;" height="19"&gt;&lt;b&gt;INVENTORY BALANCES AT DECEMBER 31&lt;/b&gt;&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td width="547" align="left" height="19" colspan="13"&gt;&lt;i&gt;(Dollars in millions)&lt;/i&gt;&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td height="14" width="145" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td width="134" align="center" height="14" colspan="4"&gt;Sempra 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          <NonNumericTextHeader>Inventories The Sempra Utilities value natural gas inventory by the last-in first-out (LIFO) method. As inventories are sold, differences between the LIFO</NonNumericTextHeader>
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