Sempra Energy will move forward with plans to sell stock in Sempra Partners LP, a newly formed unit that will own stakes in renewable energy facilities and terminals that can import and export natural gas, Bloomberg said June 16.
Sempra expects the master-limited partnership to file for registration in the second half of the year, according to a statement Tuesday. The owner of San Diego Gas & Electric has said previously it was considering an IPO of assets such as liquefied natural gas projects.
Sempra is joining other utilities in carving off assets into publicly traded investment vehicles that provide steady, long-term revenue streams and dividends, while enjoying tax advantages. NiSource Inc. and Dominion Resources Inc. have formed MLPs for their gas infrastructure assets.
Sempra’s partnership will initially include an interest in the company’s Energia Costa Azul LNG facility in Baja California, Mexico, and renewable power plants. It could also include Sempra’s 50 percent stake in the Cameron LNG export terminal under construction in Louisiana, its 100 percent stake in the Cameron pipeline, as well as wind and solar projects, the company said.
Sempra rose as much as 1.2 percent in after-market trading in New York. The partnership was announced after the close of regular trading.
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