Sempra Energy has announced that its Board of Directors has authorised the company to pursue the formation and initial public offering of a publicly traded partnership to be called Sempra Partners, LP. Based in San Diego, Sempra Energy, is a Fortune 500 energy services holding company with interest in the LNG industry and its 17 000 employees serve over 32 million consumers, worldwide.
Sempra Energy has received its private letter ruling from the Internal Revenue Service, related to the formation of its master limited partnership (MLP) and expects to form Sempra Partners as a MLP. Sempra Partners will own assets and interests producing MLP-qualifying income, including dividends from a corporate subsidiary. Initially, the MLP is expected to own one or more of the following assets: an interest in a US entity with contracts related to deliveries of LNG at the Energia Costa Azul regasification facility, interests in certain of Sempra Energy's contracted renewable energy projects or other assets with attributes attractive for inclusion in Sempra Partners.
LNG-related infrastructure projects
Sempra Energy expects to grant Sempra Partners a right of first offer on certain LNG-related infrastructure projects, including Sempra Energy's 50% interest in the first three trains of the Cameron natural gas liquefaction terminal and Sempra Energy's 100% interest in Cameron Interstate Pipeline, as well as Sempra Energy's interests in certain contracted wind and solar projects.
Sempra Energy expects Sempra Partners to file a registration statement with the Securities and Exchange Commission (SEC) in 2Q15. Subject to market conditions and further approval of Sempra Energy's Board of Directors, an offering of common units representing limited-partner interests would follow registration with the SEC. Upon completion of the initial public offering, Sempra Energy expects to own the general partner of Sempra Partners, all of its incentive distribution rights, a portion of its common units and all of its subordinated units.
Comment from Sempra Energy"Sempra Partners is designed to support continued growth within Sempra Energy's existing strategy of long-term, contracted infrastructure development," said Debra L. Reed, Chairman and CEO of Sempra Energy. "We remain focused on value creation for the Sempra Energy shareholders and we believe Sempra Partners will provide an additional source of competitively priced capital to continue to support this initiative for the long term."
Edited from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/17062015/sempra-energy-forms-sempra-partners-lp/