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Sempra Energy Sells U.S. Gas Storage Assets to ArcLight Capital Partners for $328 Million

Sempra Energy, February 8, 2019

Sempra Energy has completed the sale of its non-utility U.S. natural gas storage facilities to an affiliate of ArcLight Capital Partners (ArcLight) for $328 million in cash, subject to customary post-closing adjustments. ArcLight's affiliate Enstor Gas will operate the facilities going forward.

"With the sale of these assets, we can reallocate capital toward growing our core electric and natural gas infrastructure businesses," said Joseph A. Householder, president and chief operating officer of Sempra Energy. "We are focused on expanding our leadership position in the most attractive markets as we strive to become North America's premier energy infrastructure company."

The non-utility natural gas storage assets included in the sale are the Mississippi Hub storage facility in Simpson County, Miss., 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.

The sale included Sempra Energy's approximate 91-percent stake in Bay Gas. Immediately prior to the sale, Sempra Energy's subsidiary acquired the approximate 9-percent interest from a minority owner and included it in the sale to ArcLight. ArcLight owns now 100 percent of Mississippi Hub and Bay Gas. 

Sempra Energy's financial advisor for this transaction is Wells Fargo Securities, LLC, and its legal advisor is Jones Day.

About ArcLight Capital Partners

ArcLight is one of the leading private equity firms focused on energy infrastructure investments. Founded in 2001, the firm helped pioneer an asset-based private equity approach to investing in the dynamic energy sector. ArcLight has invested approximately $21 billion in over 100 transactions since inception. Based in Boston, the firm's investment team employs a hands-on value creation strategy that utilizes its in-house technical, operational, and commercial specialists and works closely with the firm's 1,000-person asset management affiliate.

About Sempra Energy

Sempra Energy, a San Diego-based electric and natural gas infrastructure company with 2017 revenues of more than $11 billion, is the utility holding company with the largest U.S. customer base. The Sempra Energy companies' approximately 20,000 employees serve more than 40 million consumers worldwide.


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