Sempra to Sell Gas Storage Units
US utility and power generator Sempra Energy said June 28 it intends to sell several energy infrastructure assets, including all its US wind and solar assets, but also midstream assets including gas storage.
Midstream assets included in the planned sales are Mississippi Hub LLC, an underground salt dome with 22bn ft3 (0.62bn m3) working gas storage capacity located near Jackson, Mississippi, along with related compression and pipeline facilities; and the company's 90.9% in Bay Gas Storage, a 20bn ft3 gas storage facility near Mobile, Alabama. Both are part of Sempra LNG & Midstream.
Sempra Energy CEO Jeffrey Martin said: "Our executive team and board of directors, along with our outside financial and legal advisors, have been engaged in a comprehensive strategic review of our asset portfolio over the past year, consistent with this strategy to drive shareholder value. This is just the first phase of our portfolio optimization, which we expect to continue in the coming months." The board approved the asset sales on June 25. The renewable assets to be sold have a total generating capacity of 2,600 MW, not including projects in development.
Sempra said it expects to record impairment charges related to certain of these assets totaling $1.47bn-$1.55bn, or roughly $870mn-$925mn after tax and non-controlling interests, in 2Q2018.