Sempra to Sell Energy Assets, Stake in Infrastructure Unit

Sempra will sell certain energy infrastructure assets in Mexico and a minority stake in Sempra Infrastructure to help fund its US$56 billion capital spending plan, the company announced on Monday.

The company previously outlined its five-year capital plan in February, increasing planned expenditures by 16% compared to its previous projection. More than 90% of the investments will focus on regulated utilities in Texas and California.

“These actions are designed to advance our company’s broader effort to simplify the business and minimize reliance on future common equity issuances to fund the company’s five-year capital plan,” said Jeffrey Martin, CEO, Sempra.

Sempra will sell Ecogas México, which holds three utility franchises and distributes natural gas to more than 600,000 residential, commercial, and industrial consumers in Mexicali, Chihuahua, and La Laguna-Durango.

Additionally, the company will divest a minority stake in Sempra Infrastructure, which owns liquefied natural gas (LNG) assets along with pipeline and storage infrastructure.

Sempra previously sold a 20% stake in its infrastructure unit to Kohlberg Kravis Roberts & Co. for approximately US$16.9 billion in 2021. The following year, it sold a 10% stake to the Abu Dhabi Investment Authority for approximately US$17.9 billion.

The newly announced transactions are expected to be completed within the next 12 to 18 months.