Following the sale of its non-utility U.S. natural gas storage facilities, U.S. energy company and LNG operator Sempra Energy continued to shed its assets.
Sempra Energy said on Tuesday that it entered into an agreement to complete the sale of its remaining wind operating and development assets to American Electric Power (AEP) for $551 million in cash.
Joseph A. Householder, president and COO of Sempra, stated, “The agreement to sell our U.S. wind assets along with the previously announced sales of our U.S. solar and natural gas storage assets are expected to generate approximately $2.5 billion in cash proceeds to support our growth plan as we strive to become North America’s premier energy infrastructure company.”
To remind, Sempra completed the sale of its non-utility U.S. natural gas storage facilities last week to a unit of energy private equity firm ArcLight Capital Partners.
Sempra initially agreed on the sale in early January for $328 million in cash. The assets included in the sale is the Mississippi Hub storage facility with a working capacity of 22.3 billion cubic feet (Bcf) of natural gas, and the Bay Gas storage facility with a working capacity of 20.4 Bcf of natural gas. Both facilities will be operated by ArcLight’s unit Enstor Gas.
The company added on Tuesday that the sale of its unit Sempra Renewables would include seven wind projects in which the company is either the operator or has a stake in. AEP will also acquire all of Sempra Renewables’ wind projects currently in development.
The sale is expected to be completed in the second quarter of 2019.