Infrastructure company Sempra Energy is preparing for major growth coming in electrical demand by selling assets to raise capital. (Source: Shutterstock)
Sempra Energy plans to sell some of the company’s natural gas assets to raise capital for oncoming growth of its Texas and California utilities, the company announced in a press release on March 31.
The company plans to sell assets in Mexico and a minority stake in Sempra Infrastructure Partners to support its five-year capital campaign focused on U.S. utilities.
Growing power demand in Texas requires the company to build new infrastructure. The five-year capex plan for Texas utility Oncor, which Sempra holds a majority stake in, is now $36 billion, a 50% increase over last year’s plan, according to a report from Bloomberg.
“We continually review opportunities to realign our portfolio to support the growth and expansion of our Texas and California utilities, while also maintaining a strong balance sheet," said Jeffrey W. Martin, Sempra chairman and CEO, in the announcement.
In Mexico, Sempra Infrastructure plans to sell Ecogas, which consists of three utility franchises and a natural gas distribution service to Mexico's northern region. Ecogas is the fifth-largest distribution network in Mexico with more than 5,000 km of distribution pipelines.
Aside from asset sales, Sempra has raised funds before by marketing minority stakes in its LNG business. In 2021, Sempra raised $16.9 billion by selling a 20% non-controlling interest to Kohlberg Kravis Roberts & Co. The company later sold a 10% stake in 2022 to the Abu Dhabi Investment Authority for $17.9 billion.
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