A subsidiary of Sempra Energy is to sell its non-utility U.S. natural gas storage facilities to an affiliate of ArcLight Capital Partners (ArcLight) for $332m in cash.
The facilities will become part of the Enstor natural gas storage platform, which ArcLight acquired in 2018.
The gas storage assets included in the sale to ArcLight 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.
Sempra Energy’s subsidiary currently owns approximately 91 percent of Bay Gas storage facility. Immediately prior to the sale, Sempra Energy’s subsidiary will purchase the approximate 9-percent interest from a minority owner and include it in the sale to ArcLight.
The sale of the non-utility natural gas assets to ArcLight is expected to be completed in the first quarter 2019. At closing, ArcLight will own 100 percent of Mississippi Hub and Bay Gas storage facilities.
Last month, Sempra Energy announced that it had completed the sale of its non-utility U.S. operating solar assets, solar and battery storage development projects, as well as its ownership interest in one wind facility, to Consolidated Edison, Inc. for approximately $1.6bn in cash.
An active sales process continues for Sempra Energy’s non-utility U.S. wind assets.
For more information visit www.sempra.com
4th January 2019