The Mississippi Hub storage facility and the Bay Gas storage facility are the two non-utility natural gas storage assets in US 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% of Mississippi Hub and Bay Gas. Enstor Gas, an affiliate of ArcLight, will be responsible for the operations of the facilities.
Sempra Energy president and chief operating officer Joseph A. Householder said: “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.”
Sempra Energy has sold approximately 91% stake in Bay Gas and prior to the sale, it’s subsidiary acquired the approximate 9% interest from a minority owner and included it in the sale to ArcLight.
For this transaction, Wells Fargo Securities and its legal advisor is Jones Day served as the Sempra Energy’s financial advisor.
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.
Sempra Energy is expected to sell its 100% stake in Chilquinta Energía and 83.6% 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% stake in Chilquinta Energía and about 42% stake in Luz del Sur in 1999.
