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Sempra is set to sell a USD 10 billion stake in its infrastructure business to a KKR-led consortium, giving the group 65% ownership, while Sempra and the Abu Dhabi Investment Authority retain 25% and 10%, respectively. The infrastructure unit is valued at approximately USD 22.2 billion. At the same time, Sempra approved a USD 14 billion expansion of its Port Arthur LNG facility in Texas, which will add two liquefaction trains, storage, and support facilities, increasing capacity by 13 million tonnes annually with operations expected in 2030-31. The move is part of Sempra's strategy to streamline operations and improve earnings per share from 2027.
Sempra recently announced that it will sell a USD 10 billion stake in its infrastructure business, while also approving a USD 14 billion expansion of its Port Arthur LNG project in Texas. The transaction gives a KKR-led consortium 65% of the unit, Sempra will retain 25%, and the Abu Dhabi Investment Authority will hold the remaining 10%. This strategic sale reflects Sempra's focus on simplifying its portfolio and strengthening its core utility operations. Advertisement
The sale values Sempra Infrastructure Partners which includes its liquefied natural gas assets along with pipelines, storage, and related infrastructure at approximately USD 22.2 billion. The deal is expected to close between the second and third quarters of 2026. Sempra said the move will allow it to streamline its operations, reduce exposure to non-utility assets, and avoid issuing common stock for financing its USD 56 billion five-year capital plan from 2025 to 2029. Analysts estimate that the transaction could increase Sempra's annual earnings per share by about USD 0.20 starting from 2027.
Following the announcement, Sempra shares rose more than 4%, reaching around USD 85.83. The Port Arthur LNG expansion, referred to as Phase 2, will add two liquefaction trains, a large LNG storage tank, and supporting infrastructure, increasing annual production capacity by 13 million tonnes. Commercial operations for these additions are planned between 2030 and 2031.
Funding for the expansion will involve a USD 7 billion minority equity investment led by Blackstone Credit & Insurance, along with contributions from KKR, Apollo-managed funds, and Goldman Sachs Alternatives. Sempra Infrastructure Partners will retain a controlling 50.1% stake in the expanded project.
The expansion reflects rising global demand for U.S. LNG exports. Historically, Sempra has been managing a mix of utility and non-utility businesses, and this deal is part of a broader trend where the company focuses capital on projects with stronger and more predictable returns. Over the past few years, Sempra has also invested in pipelines, LNG terminals, and storage assets to balance growth with operational stability.
This transaction not only strengthens Sempra's financial position but also signals confidence in long-term LNG demand. By divesting a major portion of its infrastructure unit, Sempra can maintain operational flexibility while preparing for future energy infrastructure growth.
Source Reuters
5th Jun, 2025
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