Sempra Energy says that its board of directors has authorized the company to pursue the formation and initial public offering of a publicly traded partnership to be called Sempra Partners, LP, expected to be listed on the New York Stock Exchange under the ticker symbol 'SREP.'
Sempra Energy has received its Private Letter Ruling from the Internal Revenue Service related to the formation of its master limited partnership (MLP) and would expect to form Sempra Partners as an 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 U.S. entity with contracts related to deliveries of liquefied natural gas (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.
Sempra Energy expects to grant Sempra Partners a right of first offer (ROFO) on certain LNG-related infrastructure projects, including Sempra Energy's 50-percent interest in the first three trains of the Cameron natural gas liquefaction terminal and Sempra Energy's 100-percent interest in Cameron Interstate Pipeline, as well as Sempra Energy's interests in certain contracted wind and solar projects.