ArcLight Acquires Sempra Energy’s U.S. Natural Gas Storage Assets for $328 Million
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Sempra Energy has completed the sale of its non-utility U.S. natural gas storage facilities to an affiliate of ArcLight Capital Partners for $328 million in cash.
The Mississippi Hub storage facility and the Bay Gas storage facility are the two non-utility natural gas storage assets in U.S. that Sempra Energy has included in this sale.
The Mississippi Hub storage facility is located in Simpson County, with a working capacity of 22.3 billion cubic feet (Bcf) of natural gas, and the Bay Gas storage facility is in Southwest Alabama, it comprises of five underground caverns with a working capacity of 20.4 Bcf of natural gas.
Following the sale, ArcLight owns 100 percent of Mississippi Hub and Bay Gas. Enstor Gas, an affiliate of ArcLight, will be responsible for the operations of the facilities.
“With the sale of these assets, we can reallocate capital toward growing our core electric and natural gas infrastructure businesses. We are focused on expanding our leadership position in the most attractive markets as we strive to become North America’s premier energy infrastructure company,” said Sempra Energy President and Chief Operating Officer Joseph A. Householder.
Sempra Energy has sold approximately 91 percent stake in Bay Gas and prior to the sale, it’s subsidiary acquired the approximate 9 percnt interest from a minority owner and included it in the sale to ArcLight.
Recently, the Sempra Energy has announced that it is planning to sell its equity interests in the South American businesses, including Luz del Sur in Peru and Chilquinta Energía in Chile.
Related
Sempra Energy is expected to sell its 100 percent stake in Chilquinta Energía and 83.6 percent stake in Luz del Sur, along with its interests in two energy-services companies, Tecnored and Tecsur.
Tecnored and Tecsur offer electric construction and infrastructure services to Chilquinta Energía and Luz del Sur, respectively.
The company acquired about 50 percent stake in Chilquinta Energía and about 42 percent stake in Luz del Sur in 1999.
Source: Compelo
To stop by ArcLight’s website, CLICK HERE
To stop by Sempra’s website, CLICK HERE
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