Sempra Energy LNG infrastructure unit draws interest from Abu Dhabi fund

Abu Dhabi's sovereign wealth fund has agreed to take a 10% stake in a Sempra Energy unit that includes the US energy provider's North American LNG infrastructure, they said Dec. 21.

The $1.785 billion transaction, announced in a joint statement by Sempra and the Abu Dhabi fund, follows a previous sale of a 20% stake in the unit, Sempra Infrastructure Partners, to US private equity firm KKR. The earlier deal fetched $3.37 billion for Sempra.

After the latest deal is completed in the summer of 2022, Sempra will hold a controlling 70% stake in its infrastructure.

The stake sale to an affiliate of Abu Dhabi Investment Authority is subject to certain conditions. Proceeds will be used to help fund incremental capital expenditures at Sempra's utilities and repurchase $500 million of the company's stock, Sempra said.

Sempra, a power provider and transmission operator based in San Diego, owns a majority stake in and operates the three-train Cameron LNG export terminal in Louisiana. It also is building the first phase of a liquefaction project at the site of the Energia Costa Azul regas facility on Mexico's Pacific Coast. Sempra is prioritizing commercializing an expansion at Cameron LNG ahead of advancing its proposed Port Arthur LNG export project in Texas.

Abu Dhabi's interest in North American LNG comes months after Sempra disclosed that efforts to finalize a long-term deal with Saudi Aramco to support the Port Arthur project had fallen through. Sempra's infrastructure unit also includes Sempra's almost 100% ownership stake in Mexican affiliate IEnova.