The pipeline and natural gas infrastructure assets acquired are supported by customer contracts with an average duration of 13 years.

AN DIEGO, [WorldofRenewables.com]

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Sempra Pipelines & Storage, a unit of Sempra Energy (NYSE: SRE), today announced the completion of its acquisition of the Mexican pipeline and gas infrastructure assets of El Paso Corp. (NYSE: EP) for $300 million ($260 million, net of cash and debt).

The acquisition, which was announced on Feb. 24, 2010, includes a natural gas pipeline and compression assets in the Mexican state of Sonora and a 50-percent interest in a joint venture with PEMEX, the Mexican state-owned oil company. The joint venture operates two natural gas pipelines and a propane system in northern Mexico.

“We are pleased with the closing of this transaction and the positive support from the Mexican regulators,” said George S. Liparidis, president and chief executive officer of Sempra Pipelines and Storage. “These new assets allow us to quickly expand our natural gas infrastructure business in northern Mexico. “

The pipeline and natural gas infrastructure assets acquired are supported by customer contracts with an average duration of 13 years.

As part of the transaction, Sempra Pipelines & Storage acquired a seven-mile natural gas pipeline and a compressor station in the state of Sonora, which transports natural gas from the U.S. border to a Mexico power plant that provides electricity to the Comisión Federal de Electricidad, the country’s state-owned electric utility.

The joint venture with PEMEX owns and operates: the 23-mile, 24-inch Samalayuca natural gas pipeline and Gloria a Dios compressor station in Chihuahua that supply natural gas from the U.S. to various Mexican power plants; the 70-mile, 36-inch San Fernando natural gas pipeline in the state of Tamaulipas; and the 114-mile, 12-inch pipeline that transports liquid propane from the Burgos production area to a delivery facility near the city of Monterrey.

The transaction has received authorization from the Mexican Federal Competition Commission.

Sempra Pipelines & Storage owns several other assets in Mexico, including pipelines in Baja California connecting Sempra LNG’s liquefied natural gas receipt terminal near Ensenada with various power plants in the region, as well as with pipeline systems in the United States. Sempra Pipelines & Storage also owns Ecogas Mexico S.R.L., a natural gas utility that serves more than 90,000 residential, commercial and industrial customers in Northern Mexico with operations in Mexicali, Chihuahua, La Laguna (“Torreon- Gomez Palacio”) and Durango.

Sempra Pipelines & Storage develops, builds and operates natural gas pipelines and storage facilities in Latin America and the United States. The company and its affiliates operate and/or own more than 1,200 miles of pipelines and are developing an additional 800 miles to help meet North America’s growing demand for energy. It also manages natural gas and electricity distribution in Argentina, Chile, Mexico and Peru. Sempra Pipelines & Storage is a subsidiary of Sempra Energy, a San Diego-based Fortune 500 energy services holding company.

Source: Sempra

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