WASHINGTON (dpa-AFX) - Sempra Energy (SRE) Wednesday said it has agreed to sell its non-utility U.S. natural gas storage facilities to an affiliate of ArcLight Capital Partners for $332 million in cash.
The facilities will become part of the Enstor natural gas storage platform, which ArcLight acquired in 2018.
'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,' said Joseph A. Householder, president and chief operating officer of Sempra Energy. 'Completing this sale, along with the recently announced sale of our non-utility U.S. solar assets, enables us to reallocate capital to further strengthen our balance sheet and support Sempra Energy's future growth opportunities.'
The gas storage assets included in the sale are the Mississippi Hub storage facility in Simpson County, Mississippi, with a working capacity of 22.3 billion cubic feet 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.
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.
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