US-based utility company Sempra Energy is set to sell several energy infrastructure assets, including its entire wind and solar portfolio, as well as midstream sites in the country.
Sempra’s board of directors has approved the sale, following a comprehensive strategic review of the company’s businesses and asset portfolio during the past 12 months.
The sale is part of the company’s multi-phase portfolio optimisation initiative, which has been designed to sharpen its strategic focus.
Sempra Energy CEO Jeffrey Martin said: “Our strategy is to continue building a leading energy company operating best-in-class utilities and developing contracted energy infrastructure in some of the largest economies in the Americas, with a focus centred on North America.
“Our executive team and board of directors, along with our outside financial and legal advisers, have been engaged in a comprehensive strategic review of our asset portfolio over the past year, consistent with this strategy to drive shareholder value.
“The review was guided by several important considerations and factors, including the deployment of additional capital to improve critical utility infrastructure, changes in the US tax code, California regulatory developments and strategic growth opportunities.”
The sale of solar and wind assets that are part of Sempra Renewables include wholly owned facilities, and joint venture and tax-equity investments with a total generating capacity of about 2,600MW.
Projects that are in development are also included in the sale.
Sempra Renewables currently has stake and investments in nine solar projects in Nevada, Arizona and California and wind projects in eight states stretching from Hawaii to Pennsylvania.
Midstream assets included in the planned sales are Mississippi Hub, an underground salt dome with 22 billion cubic feet (Bcf) of working natural gas storage capacity located near Jackson, Mississippi, along with related compression and pipeline facilities.
The company also intends to sell 90.9% ownership stake in Bay Gas Storage Company, a 20 billion cubic feet natural gas storage facility near Mobile, Alabama.
Both storage facilities are part of Sempra LNG & Midstream.