El Paso has entered into an agreement to sell its interest in Mexican pipeline and compression assets to Sempra Pipelines & Storage, a unit of Sempra Energy, for $300 million. The sale includes El Paso's 50 percent interest in a joint venture with the Mexican state oil company, Pemex, that owns various pipeline assets in northern Mexico close to the Texas border, as well as a 100-percent owned pipeline that originates at the Arizona border. The transaction is expected to close in the second quarter of 2010 and is subject to lender consent, as well as Mexican regulatory approval.
"We are pleased to announce the sale of these assets as a part of our 2010 plan," said Doug Foshee, chairman, president and chief executive officer of El Paso Corporation. "Today's announcement, along with other progress across the board, demonstrates that our 2010 plan is off to a great start."
Foshee added, "And while we're exiting this joint venture, Pemex will continue to be an important customer of our U.S. pipelines. Our relationship is longstanding and highly valued."
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