Sempra Energy Sells US Natural Gas Storage Facilities
Sempra Energy is selling its U.S. natural gas storage facilities for $332 million cash to ArcLight Capital Partners, the company announced Jan. 2.
Included in the sale are the Mississippi Hub storage facility in Simpson County, Mississippi and the Bay Gas storage facility in Southwest Alabama. The Mississippi assets have a working capacity of 22.3 billion cubic feet of natural gas and the Alabama assets comprise five underground caverns with a working capacity of 20.4 billion cubic feet of natural gas.
San Diego-based Sempra Energy already owns 91 percent of the Bay Gas storage facility and will purchase the nine percent interest from a minority owner immediately before the sale to ArcLight.
“Our agreement to sell our non-utility U.S. natural gas storage assets is an important component to achieving our portfolio-optimization goals we announced in June 2018,” Sempra Energy CEO Joseph Householder said in a company statement.
The sale is expected to be completed in the first quarter of 2019.
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