The acquisition involves El Paso’s wholly-owned natural gas pipeline and compression assets in the Mexican border state of Sonora. Sempra will also acquire El Paso’s 50 per cent interest in a joint venture with PEMEX, which operates two natural gas pipelines and a propane system in northern Mexico, under the deal.
The joint venture with PEMEX owns and operates:
- The 37 km, 24 inch Samalayuca natural gas pipeline and Gloria a Dios compressor station in Chihuahua that supply natural gas from the United States to various Mexican power plants;
- The 113 km, 36 inch San Fernando natural gas pipeline in the state of Tamaulipas;
- The 183 km, 12 inch pipeline that transports liquid propane from the Burgos production area to a delivery facility near the city of Monterrey.
Sempra Pipelines & Storage will acquire El Paso’s 11 km Agua Prieta natural gas pipeline and Naco compressor station in Sonora, which facilitates the delivery of natural gas from the United States border to a Mexico power plant that provides electricity to the country’s state-owned electric utility.
Subject to approvals by lenders and Mexican regulatory authorities, the transaction is expected to be completed in the second quarter 2010.
