Sempra Energy headquarters in San Diego

Electric and natural gas infrastructure company Sempra Energy has sold its non-utility natural gas storage facilities in the US to an ArcLight Capital Partners’ affiliate in a $328m all-cash deal.

Sempra Energy signed an agreement last month to sell the assets through an affiliate.

ArcLight’s affiliate Enstor Gas will assume operatorship of the storage facilities. ArcLight acquired the Enstor natural gas storage platform last year.

The assets acquired by ArcLight include the Mississippi Hub storage facility in Simpson County, Mississippi, and the Bay Gas storage facility in Southwest Alabama.

“With the sale of these assets, we can reallocate capital toward growing our core electric and natural gas infrastructure businesses.”

The Mississippi Hub facility has a working capacity of 22.3 billion cubic feet (Bcf) of natural gas, while Bay Gas comprises five underground caverns with a working capacity of 20.4Bcf.

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

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“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.”

Before signing the agreement, Sempra Energy owned a 91% stake in Bay Gas. The company’s subsidiary acquired the remaining 9% interest from a minority owner before the sale to give ArcLight a 100% interest in the asset.

Last month, the firm announced the planned sale of its equity interests in its South American businesses, including an 83.6% stake in Luz del Sur in Peru and 100% in Chilquinta Energía in Chile as part of a strategy to focus on North American markets.

Sempra Energy recently obtained an environmental approval from the US energy regulator to build the Port Arthur liquefied natural gas (LNG) export terminal in Jefferson County, Texas.