Sempra Energy has completed the sale of its non-utility U.S. natural gas storage facilities to an affiliate of ArcLight Capital Partners (ArcLight) for $328m. The company aims to reallocate capital from the sale toward growing its core electric and natural gas infrastructure businesses.
ArcLight’s affiliate Enstor Gas will operate the facilities going forward.
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.
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