NEWS
Sempra sells storage to focus on core LNG
San Diego, Aug 22 (LNG journal)
- Sempra Energy said it would sell an indirect subsidiary whose main assets are two natural gas storage facilities as it concentrated on its core liquefied natural gas business in that sector.
Sempra said in a statement it was selling Bluewater Gas Storage and Pine Prairie Energy Center for approximately $250 million to Plains All American Pipeline, L.P. and Vulcan Capital.
Bluewater Gas Storage, located in St. Clair , Michigan , is a gas storage facility with current capacity of 20 billion cubic feet that went into operation in May 2004. Pine Prairie Energy Center is a planned salt-cavern gas storage project with expected capacity of 24 Bcf under development in Evangeline Parish , Louisiana .
"Due to current favorable market conditions, we believe this is an opportune time to monetize these gas storage assets, which are not critical to our liquefied natural gas (LNG) and gas infrastructure strategy," said Mark Snell, group president of Sempra Global. "We remain committed to developing gas storage and pipeline assets consistent with our strategy to meet growing energy demand in North America ."
Through its Sempra Pipelines & Storage unit, Sempra Global has signed binding agreements and will construct, own and operate the Cameron Interstate Pipeline, a 36-inch, 35-mile natural gas pipeline that will connect Cameron LNG, a terminal being constructed by affiliate Sempra LNG near Lake Charles , Louisiana , to interstate and intrastate pipelines.
