Sempra Streamlines Structure
US LNG developer Sempra Energy announced on December 2 a series of offers aimed at simplifying its energy infrastructure investments under a single platform, "creating scale, unlocking portfolio synergies and better positioning the business for growth."
The company plans to launch a stock-for-stock exchange offer for the publicly-traded shares of its Mexican unit IEnova, with its own shares due to be listed on the Mexican stock exchange. IEnova took a final investment decision in mid-November on the first phase of its Energia Costa Azul (ECA) LNG project on Mexico's Pacific coast, marking the first approval of new liquefaction-export capacity this year.
Sempra also intends to form a new business platform called Sempra Infrastructure Partners, bringing together its LNG infrastructure development arm Sempra LNG and IEnova. It also plans to sell a non-controlling interest in Sempra Infrastructure Partners to help fund growth. The company aims to close these transactions in the first quarter of 2021, pending regulatory approvals.
"We are excited about today's announcement. In large measure, it is because we believe Sempra Infrastructure Partners is well positioned to be a leader in the global energy transition," Sempra CEO Jeffrey Martin said. "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."
Sempra Infrastructure Partners will also serve as an improved platform for investing in renewables, hydrogen, energy storage and carbon sequestration," he said.