Sempra Energy has entered an agreement to sell its non-utility US natural gas storage facilities to ArcLight Capital Partners for $332 million.
The assets included in the sale to ArcLight 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.
These assets will become part of the Enstor natural gas storage platform that ArcLight acquired in 2018.
Joseph A. Householder, president and COO of Sempra Energy, says: 'Our agreement to sell our non-utility natural gas storage assets is an important component to achieving our portfolio-optimisation goals we announced in June 2018.
'Completing this sale, along with the recently announced sale of our non-utility US solar assets, enables us to reallocate capital to further strengthen our balance sheet and support Sempra Energy's future growth opportunities.'
Sempra Energy's subsidiary currently owns 91% of Bay Gas storage facility. Immediately prior to the sale, Sempra Energy's subsidiary will purchase the 9% interest from a minority owner and include it in the sale to ArcLight.
The sale is expected to be completed in the first quarter 2019.
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