U.S. energy company and LNG operator Sempra Energy said it has agreed to sell its non-utility U.S. natural gas storage facilities to an ArcLight Capital Partners company for $332 million.
The facilities will become part of the Enstor natural gas storage platform, which ArcLight acquired in 2018, Sempra said in irs statement.
“Our agreement to sell our non-utility U.S. natural gas storage assets is an important component to achieving our portfolio-optimization goals we announced in June 2018,” said Joseph Householder, president and chief operating officer of Sempra Energy.
The gas storage assets included in the sale to ArcLight are the Mississippi Hub storage facility in Simpson County, Mississippi, with a working capacity of 22.3 billion cubic feet (Bcf) of natural gas, and the Bay Gas storage facility in Southwest Alabama, which comprises five underground caverns with a working capacity of 20.4 Bcf of natural gas.
Sempra Energy’s unit currently owns approximately 91 percent of Bay Gas storage facility. Immediately prior to the sale, Sempra Energy’s unit will purchase the approximate 9-percent interest from a minority owner and include it in the sale to ArcLight.
The sale of the non-utility natural gas assets to ArcLight is expected to be completed in the first quarter of 2019. At closing, ArcLight will own 100 percent of Mississippi Hub and Bay Gas storage facilities.