Sempra Energy is to bring all of its energy infrastructure investments together in a new platform, which is says will be well-positioned to be a leader in the global energy transition.
As part of this, the company has announced a number of transactions, including an offer for all the publicly traded shares of Mexican pipeline, storage and renewables firm IEnova that it does not already hold.
The new business platform will be called Sempra Infrastructure Partners and will combine Sempra LNG – the assets of which include the Cameron LNG project and the Port Arthur LNG facility in the US – and IEnova, one of the largest private energy companies in Mexico. Sempra Energy has offered 0.0313 of shares in its common stock for each ordinary share of IEnova, representing a premium of 11.6% over IEnova’s 30-day volume-weighted average stock price. Reuters reports that the offer for the shares amounts to US$6.13 billion (€4.05 billion) based on the closing price of the shares on the Mexican stock exchange, the Bolsa Mexicana de Valores (BMV), and that Sempra currently owns 66.43% of IEnova.
‘By focusing on the critical need for new energy infrastructure right here in North America, both Sempra LNG and IEnova have created a significant pipeline of development projects that are expected to provide differentiated growth for decades to come. More importantly, this will provide an improved platform for innovation and potential new investments in renewables, hydrogen, energy storage and carbon sequestration,’ says Jeffrey W. Martin, chairman and CEO of Sempra Energy.
Sempra Infrastructure Partners is intended to simplify and add scale to Sempra’s North American infrastructure business and will focus on the development and construction of LNG export infrastructure, natural gas infrastructure and renewable energy generation. It will have 45 million tpa of LNG export capacity in development, construction or operation, various natural gas distribution companies, cross-border and in-country pipelines, including those that export U.S. natural gas to Mexico and supply the Energía Costa Azul LNG facility, and a renewable energy generation portfolio of 4 GW in development, construction or operation in Mexico.
To help fund the new plans, Sempra Energy will sell a non-controlling interest in Sempra Infrastructure Partners in Q1 2021.
If the IEnova offer is accepted and the deal is approved by the Mexican National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores, CNBV), the US Securities and Exchange Commission (SEC) and the BMW, the Sempra Energy exchange shares will be listed on the BMV.
‘As part of Sempra Energy’s family of companies, IEnova has delivered critical energy infrastructure to the country of Mexico for over two decades, supporting economic growth and the health and wellbeing of millions. With the proposed transactions announced today, we are proud to reaffirm our belief in Mexico’s bright future and look forward to helping both Mexico and the US unlock greater opportunities for continued economic collaboration, expansion and prosperity,’ Martin adds.
