Sempra Energy has struck a deal to sell a 45% stake in its infrastructure business, Sempra Infrastructure Partners, to companies affiliated with KKR and the Canada Pension Plan Investment Board.
The transaction will make the KKR-led group of investors the majority shareholder in Sempra Infrastructure Partners, with 65%, while Sempra’s share will decline to 25%. The third shareholder in the company is the Abu Dhabi Investment Authority with 10%.
The company said that the price tag of the deal puts Sempra Infrastructure Partners’ equity value at $22.2 billion and its enterprise value at $31.7 billion. “The transactions announced today further Sempra’s corporate strategy by advancing the company’s capital recycling program and transition to a leading U.S. utility growth business,” Sempra’s chief executive, Jeffrey Martin, said.
Last year, there were reports that Saudi Aramco was also interested in acquiring a stake in Sempra’s business. Earlier this year, the Saudi company signed a preliminary agreement for a 20-year commitment to source LNG from Port Arthur LNG and reiterated its intention to take a direct interest in Phase 2 of the project.
In addition to the deal with KKR, Sempra Energy also announced the final investment decision on its Port Arthur LNG Phase 2 project. The second phase of the project will consist of two liquefaction trains and a storage tank. The facility will have a capacity of 13 million tons of liquefied gas per year.
The second phase of the Port Arthur LNG plant already has long-term offtake commitments from companies including ConocoPhillips, EQT, Japan’s JERA, and Sempra Infrastructure Partners itself. The deals are for a period of 20 years, the company said in its update.
Sempra Energy is currently building the first phase of the Port Arthur LNG facility, which will also have a nameplate capacity of 13 million tons per year.
By Irina Slav for Oilprice.com
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