Sempra Energy Completes Sale of U.S. Natural Gas Storage Assets to ArcLight Capital Partners

Source Press Release
Company Sempra EnergyArcLight Capital Partners, LLC 
Tags Asset Deals, Deals, LNG & Gas Storage/Processing
Date February 07, 2019

Sempra Energy (NYSE: SRE) today announced that it has completed the sale of its non-utility U.S. natural gas storage facilities to an affiliate of ArcLight Capital Partners (ArcLight) for $328 million in cash, subject to customary post-closing adjustments. ArcLight's affiliate Enstor Gas will operate the facilities going forward.

"With the sale of these assets, we can reallocate capital toward growing our core electric and natural gas infrastructure businesses," said Joseph A. Householder, president and chief operating officer of Sempra Energy. "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."

The non-utility natural gas storage assets included in the sale are the Mississippi Hub storage facility in Simpson County, Miss., with a working capacity of 22.3 billion cubic feet (Bcf) of natural gas, and the Bay Gas storage facility in Southwest Alabama, which comprises five underground caverns with a working capacity of 20.4 Bcf of natural gas.

The sale included Sempra Energy's approximate 91-percent stake in Bay Gas. Immediately prior to the sale, Sempra Energy's subsidiary acquired the approximate 9-percent interest from a minority owner and included it in the sale to ArcLight. ArcLight owns now 100 percent of Mississippi Hub and Bay Gas. 

Sempra Energy's financial advisor for this transaction is Wells Fargo Securities, LLC, and its legal advisor is Jones Day.

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd