Sempra Energy’s unit, Sempra U.S. Gas & Power on Wednesday agreed to sell its 25 percent interest in the Rockies Express pipeline (REX) for approximately $440 million in cash to Tallgrass Development.
Patti Wagner, president and chief executive officer of Sempra U.S. Gas & Power said in a statement that while REX is an important part of the country’s natural gas pipeline system, given the changing market conditions, Sempra believes it can more productively redeploy the proceeds from the sale into long-term growth opportunities.
The 1,712-mile natural gas pipeline extending from Opal, Wyoming, and Meeker, Colorado, to Clarington, Ohio, is one of the largest natural gas pipelines ever constructed in North America. The pipeline has the capacity to transport 1.8 billion cubic feet per day.
The pipeline is owned and operated by Rockies Express Pipeline a joint venture by units of Tallgrass Development (50 percent share), Sempra (25 percent share), and Phillips 66 (25 percent share).