Sempra sells Peruvian assets, ink LNG MoU with China’s CTG

San Diego-based energy company and LNG operator Sempra Energy has agreed a $3.59 billion sale of its Peruvian business and signed an LNG supply memorandum of understanding with a Chinese partner. 

Sempra Energy has entered into an agreement to sell its equity interests in its Peruvian businesses, including its 83.6 percent stake in Luz del Sur to China Yangtze Power International (Hongkong), for $3.59 billion in cash.

The sale will also include Sempra Energy’s interest in Tecsur, which provides electric construction and infrastructure services to Luz del Sur and third parties, and Inland Energy, Luz del Sur’s generation business.

The sale is expected to be completed in the first quarter of 2020, subject to customary closing conditions, including approval by the Peruvian anti-trust authority and the Bermuda Monetary Authority.

An active sales process continues for Sempra Energy’s electric businesses in Chile, including the company’s 100 percent stake in Chilquinta Energía and Tecnored. The company said in its statement it expects to reach an agreement in the fourth quarter of this year.

In addition, Sempra Energy’s unit Sempra LNG has entered into a memorandum of understanding with China Three Gorges Corporation (CTG), the ultimate parent company of CYP, regarding potential cooperation in supplying liquefied natural gas (LNG) to support demand growth in China, including the growth of natural gas power generation.

Ultimate participation remains subject to finalization of a definitive agreement, among other factors, Sempra’s statement reads.

“This initial agreement with CTG represents an opportunity to support strong growth in natural gas demand in Asia, with future expansions of our LNG projects right here in North America,” said Jeffrey Martin, chairman and CEO of Sempra Energy.