Sempra Energy has completed the sale of its non-utility US natural gas storage facilities to an affiliate of ArcLight Capital Partners for US$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, Mississippi, US, with a working capacity of 22.3 billion ft3 of natural gas, and the Bay Gas storage facility in Southwest Alabama, which comprises five underground caverns with a working capacity of 20.4 billion ft3 of natural gas.
The sale included Sempra Energy's approximate 91% stake in Bay Gas. Immediately prior to the sale, Sempra Energy's subsidiary acquired the approximate 9% interest from a minority owner and included it in the sale to ArcLight. ArcLight owns now 100% 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.
Read the article online at: https://www.tanksterminals.com/storage-tanks/08022019/sempra-energy-sells-us-natural-gas-storage-assets/